1. Macroeconomics
Financing of this Pakistani export (American import): Reduces the supply of money (demand deposits) in America Increases the supply of money in Pakistan by the amount of purchase PAKISTAN IMPORT TRANSACTION Suppose a Pakistani based firm buys 2 computers from an American company. ... Pakistani imports create a domestic demand for foreign currency, dollars Increases the supply of money (demand deposits) in America Decreases the supply of money in Pakistan BALANCE OF PAYMENTS Balance of payments is the record of a nation's international transactions, it ...
- Word Count: 3188
- Approx Pages: 13
- Grade Level: High School