mequa
tityofgoodsi
allcou
triesThistheoryimpliesthatthe
omi
alexcha
geratebetwee
thecurre
ciesoftwocou
triesshouldreflectthepricelevelsi
thosecou
triesAsaresultcou
trieswithrelativelyhighi
flatio
shouldhavedepreciati
gcurre
ciesa
dcou
trieswithrelativelylowi
flatio
shouldhaveappreciati
gcurre
cies


CHAPTEROUTLINE
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alFlowsofGoodsa
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wholeori
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f300Chapter18Ope
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NXExportsImports
4Defi
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cethevalueofa
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itio
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i
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etexportsatradedeficitmea
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etexportsareequaltozeroWhilethiswilllikelybeobvioustomoststude
tssomewillbe
efitifyoureviewthis8Thereareseveralfactorsthati
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