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We drow Balance of Paymentimately decis interest rates and FX. Let's say that GBPUSD is currently 1.40. The USON Balance of Payments deficit with Great and it is expected to continue ut the year. Given the information What you to set umpare parts from to Great Britain in the long run the detit per 2. What should happen to captus in terms of appreciation depreciation) now with Curveffect impact Somport/exports the above by words in your plancon We discussed how Balance of Payments ultimately affects interest rates and FX. Let's say that GBP/USD is currently 1.40. over the year. Given this information: 1 What would you expect to happen to US imports/exports from/to Great Britain in the long run if the deficit persists? 2. What should happen to GBP/USD in terms of appreciation/depreciation? 3. How will the j-Curve Effect impact USD Imports/exports given the above senario? Use key words from class in your explanation. We drow Balance of Paymentimately decis interest rates and FX. Let's say that GBPUSD is currently 1.40. The USON Balance of Payments deficit with Great and it is expected to continue ut the year. Given the information What you to set umpare parts from to Great Britain in the long run the detit per 2. What should happen to captus in terms of appreciation depreciation) now with Curveffect impact Somport/exports the above by words in your plancon We discussed how Balance of Payments ultimately affects interest rates and FX. Let's say that GBP/USD is currently 1.40. over the year. Given this information: 1 What would you expect to happen to US imports/exports from/to Great Britain in the long run if the deficit persists? 2. What should happen to GBP/USD in terms of appreciation/depreciation? 3. How will the j-Curve Effect impact USD Imports/exports given the above senario? Use key words from class in your explanation

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