Problem
1. If interest rates in Japan rise relative to those prevailing in the United States, would you expect a steady flow of capital into Japan? Why, or why not?
2. Real output and incomes rise in Country A. How and why would a Keynesian analysis of the likely effect of that event on the balance of payments of Country A differ from that of a monetarist?
3. Why is the role of the terms of trade in current account determination of more concern to small developing countries than to larger developed countries?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.