1. Define balance of payments accounts. Explain the types of items listed in the balance of payments accounts. 2. Analyze the effects of an autonomous fall in the demand for a countrys exports under...

1. Define balance of payments accounts. Explain the types of items listed in the balance of payments accounts.

2. Analyze the effects of an autonomous fall in the demand for a country’s exports under fixed and flexible exchange rate systems. In each case, indicate the effects on the country’s balance of payments and on the exchange rate.