International Economics 10th Edition by Paul Krugman,Maurice Obstfeld ,Marc Melitz

Exercise 1

If you were in charge of macroeconomic policies in a small open economy, what qualitative effect would each of the following events have on your target for external balance?
a. Large deposits of uranium are discovered in the interior of your country.
b. The world price of your main export good, copper, rises permanently.
c. The world price of copper rises temporarily.
d. There is a temporary rise in the world price of oil.