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Introduce about the open-economy macroeconomics shortly.
The Open Economy:
a. One of the major concerns introduced through open-economy macroeconomics is the exchange rate, which the price of one currency into terms of other.
b. Exchange rates can influence the aggregate price level.
c. They can also influence aggregate output by their consequence on the trade balance; the dissimilarity between the value of the goods and services a country sells to the other countries as well as the value of the goods and services that buys in return.
d. Economists are also associates about capital flows, which movements of financial assets across borders.
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When a government spends more than it receives in taxes; it runs a budget deficit, which is generally covered by issuing debt obligations to domestic and/or international investors
factors that causes the shifts in balance of payments
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