Consider an economy with zero capital mobility. Will exchange rate overshooting still occur? What happens as the degree of capital mobility increases?

What are the two most plausible reasons why countries become international lenders? What two countries fit those plausible reasons ?

What will happen to the trade balance and the real exchange rate of a small open economy when government purchases increase, such as during a war? Does your answer depend on whether this is a local war or a world war?

From time to time, a government official will argue that a country should strive for both a trade surplus and a healthy inflow of capital from abroad. Is this possible?