Problem
1. Plot the current account surplus and net exports. How much difference is there between the two time series? Comment on the significance of this.
2. The models in this chapter assume that interest rates are determined on world markets. If this were true in practice, there should not be much difference between the federal funds rate and the overnight LIBOR rate, based on the U.S. dollar. Plot these two time series and comment on what you observe.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.