. How would a relatively low home inflation rate affect the home country’s current account, other things being equal?
Is a negative current account harmful to a country? Why or why not?
. Assume that the U.S. inflation rate becomes low relative to South Korea inflation. Other things being equal, how should this affect the (a) U.S. demand for South Korean won, (b) supply of South Koreanwon for sale, and (c) equilibrium value of the South Koreanwon?