EXAM 1 REVIEW
Questions from Exam
1) Under a fixed exchange rate
A: national supply and demand for foreign currencies may vary but the nominal exchange
rate does not
2) If a country runs a current account surplus and national private savings equals domest
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i II ,II
1) What is your favorite shoe? How much on average do you pay for your shoes?
2) How much do you think they cost to make aboard?
Overhead ($2.10), and factory profit ($0.97)
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Gerber, James. International Economics. Reading, MA: Addison-Wesley, 1999. Print.
Nitsch, Volker, and Mauro Pisu. "The Euro and Trade: New Evidence." VOX. N.p., 15 July 2008.
Web. 1 Dec. 2012.
"Euro." Wikipedia. N.p., 2 Dec. 2012. Web. 3 Dec.
14-2 European Union started with the signing of the Treaty of Rome in 1957 with Belgium,
Netherlands, Luxembourg, France, West Germany and Italy. Originally was a political union
they hoped would help by pooling resources such as coal and steel. It helped
Gerber Chapter 14: The European Union, Many Markets into One
Discuss the founding institutions of the European Union and the motivations behind them
Explain the principle of subsidiarity
Describe the Schengen agreement
ECON 365 Study Guide
CHAPTER 12: INTERNATIONAL FINANCIAL CRISES
12 1) Define a banking crisis and outline its potential effects Banking crisis occurs
when the banking system becomes unable to perform its normal lending functions, or a natio
Chapter 9: Trade and the Balance of Payments
Interpret news items and statistics in relation to international debt/surplus
Differentiate current account, financial account and capital account
Demonstrate the interdependenc
ECON 365 SHORT COURSE PROJECT PROPOSAL
Name: Matt Ferris
Topic: How have exchange rates affected overseas trade between the United States and other
Format: Most likely going to be a poster/interactive format, but I want to thin