1. How does a change in the exchange rate affect the prices of goods traded between countries?

2. Why don't similar goods sell for the same price all over the world?

3. What is the relationship between inflation and changes in the exchange rate?

4. How do we find the domestic currency return on a foreign bond?

5. What is the relationship between domestic and foreign interest rates and changes in the exchange rate?

6. Why don't similar financial assets yield the same return all over the world?

7. How does fiscal policy affect exchange rates?

8. How does monetary policy affect exchange rates?

9. What can countries gain by coordinating their macroeconomic policies?