Hey Everyone! I'm Mr. Willis, and You Will Love Economics!

In this video, I will:
- Define inbound capital flow
- Explain how high interest rates drive capital inflow into an open economy
- Describe the effects of inbound capital flow on an aggregate economy and graph the impact
of inbound capital flow on the foreign exchange market
- Use a Keynesian transmission graph to show the effects of inbound capital flow on a
nation's loanable funds market, money market, foreign exchange market, and aggregate
economy as a whole
- Define outbound capital flow
- Explain how low interest rates drive capital outflow out of an open economy
- Describe the effects of outbound capital flow on an aggregate economy and graph
the impact of outbound capital flow on the foreign exchange market
- Use a Keynesian transmission graph to graph the effects of outbound capital flow on
a nation's loanable funds market, money market, foreign exchange market, and
aggregate economy as a whole


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