April 17, 2008

Capital Flow Chart

Posted in AP Exam, International Trade, Net Capital Outflow, Test Info at 7:00 pm by davidprudente

Interest

Rate

Capital

Flows

Demand for

Currency

Value of Currency

Imports

Exports

In

Appreciates

Out

Depreciates

Remember, This chart does not work for Capital Flight or Trade Barrier Scenarios

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1 Comment »

  1. […] Capital Flow Chart « AP Economics A nice table from Econ teacher David Prudente illustrating the impact of changing interest rates on capital flows and exchange rates. (tags: interest rates, exchange economics,) Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages. […]


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