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kelly.ettling
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1. In the open-economy macroeconomic model, if net capital outflow increases then
a. the demand for dollars in the market for foreign-currency exchange shifts right.
b. the demand for dollars in the market for foreign-currency exchange shifts left.
c. the supply of dollars in the market for foreign-currency exchange shifts right.
d. the supply of dollars in the market for foreign-currency exchange shifts left.
2.Which of the following is included in the demand for dollars in the market for foreign-currency exchange in the open-economy macroeconomic model?
a. A firm in Mexico wants to buy corn from a U.S. firm.
b. A Japanese bank desires to purchase U.S. Treasury securities.
c. An U.S. citizen wants to buy a bond issued by a Mexican corporation.
d. All of the above are correct.
3. When the real exchange rate for the dollar depreciates, U.S. goods become
a. less expensive relative to foreign goods, which makes exports rise and imports fall.
b. less expensive relative to foreign goods, which makes exports fall and imports rise.
c. more expensive relative to foreign goods, which makes exports rise and imports fall.
d. more expensive relative to foreign goods, which makes exports fall and imports rise.
4. If the supply of dollars in the market for foreign-currency exchange shifts left, then the exchange rate
a. rises and the quantity of dollars exchanged falls.
b. rises and the quantity of dollars exchanged does not change.
c. rises and the quantity of dollars exchanged rises.
d. falls and the quantity of dollars exchanged does not change.
5. If for some reason Americans desired to increase their purchases of foreign assets, then other things the same
a. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency exchange would fall.
b. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency would rise.
c. the real exchange rate would rise and the quantity of dollars exchanged in the market for foreign-currency would fall.
d. the real exchange rate would fall and the quantity of dollars exchanged in the market for foreign-currency would rise.
6. An increase in the budget deficit
a. reduces net capital outflow and domestic investment.
b. reduces net capital outflow and raises domestic investment.
c. raises net capital outflow and domestic investment
d. raises net capital outflow and reduces domestic investment.
7. If a country raises its budget deficit, then in the market for foreign-currency exchange
a. supply shifts left.
b. supply shifts right.
c. demand shifts left.
d. supply shifts right.
8. Which of the following would not be a consequence of an increase in the U.S. government budget deficit?
a. U.S. interest rates rise.
b. U.S. net capital outflow falls.
c. The real exchange rate of the U.S. dollar depreciates.
d. The U.S. supply of loanable funds shifts left.
9. Which of the following leads to an increase in net exports in the long run?
a. either a decrease in the budget deficit or imposing an import quota
b. a decrease in the budget deficit but not imposing an import quota
c. imposing an import quota but not a decrease in the budget deficit
d. neither a decrease in the budget deficit nor imposing an import quota
10. If the government of Kenya implemented a policy that decreased national saving, its real exchange rate would
a. depreciate and Kenyan net exports would rise.
b. depreciate and Kenyan net exports would fall.
c. appreciate and Kenyan net exports would rise.
d. appreciate and Kenyan net exports would fall.
Everybody let's thank Lionel for his help. He posted on Yahoo! Answers, yet posted no answer. Very impressive.Thanks, Lionel!
a. the demand for dollars in the market for foreign-currency exchange shifts right.
b. the demand for dollars in the market for foreign-currency exchange shifts left.
c. the supply of dollars in the market for foreign-currency exchange shifts right.
d. the supply of dollars in the market for foreign-currency exchange shifts left.
2.Which of the following is included in the demand for dollars in the market for foreign-currency exchange in the open-economy macroeconomic model?
a. A firm in Mexico wants to buy corn from a U.S. firm.
b. A Japanese bank desires to purchase U.S. Treasury securities.
c. An U.S. citizen wants to buy a bond issued by a Mexican corporation.
d. All of the above are correct.
3. When the real exchange rate for the dollar depreciates, U.S. goods become
a. less expensive relative to foreign goods, which makes exports rise and imports fall.
b. less expensive relative to foreign goods, which makes exports fall and imports rise.
c. more expensive relative to foreign goods, which makes exports rise and imports fall.
d. more expensive relative to foreign goods, which makes exports fall and imports rise.
4. If the supply of dollars in the market for foreign-currency exchange shifts left, then the exchange rate
a. rises and the quantity of dollars exchanged falls.
b. rises and the quantity of dollars exchanged does not change.
c. rises and the quantity of dollars exchanged rises.
d. falls and the quantity of dollars exchanged does not change.
5. If for some reason Americans desired to increase their purchases of foreign assets, then other things the same
a. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency exchange would fall.
b. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency would rise.
c. the real exchange rate would rise and the quantity of dollars exchanged in the market for foreign-currency would fall.
d. the real exchange rate would fall and the quantity of dollars exchanged in the market for foreign-currency would rise.
6. An increase in the budget deficit
a. reduces net capital outflow and domestic investment.
b. reduces net capital outflow and raises domestic investment.
c. raises net capital outflow and domestic investment
d. raises net capital outflow and reduces domestic investment.
7. If a country raises its budget deficit, then in the market for foreign-currency exchange
a. supply shifts left.
b. supply shifts right.
c. demand shifts left.
d. supply shifts right.
8. Which of the following would not be a consequence of an increase in the U.S. government budget deficit?
a. U.S. interest rates rise.
b. U.S. net capital outflow falls.
c. The real exchange rate of the U.S. dollar depreciates.
d. The U.S. supply of loanable funds shifts left.
9. Which of the following leads to an increase in net exports in the long run?
a. either a decrease in the budget deficit or imposing an import quota
b. a decrease in the budget deficit but not imposing an import quota
c. imposing an import quota but not a decrease in the budget deficit
d. neither a decrease in the budget deficit nor imposing an import quota
10. If the government of Kenya implemented a policy that decreased national saving, its real exchange rate would
a. depreciate and Kenyan net exports would rise.
b. depreciate and Kenyan net exports would fall.
c. appreciate and Kenyan net exports would rise.
d. appreciate and Kenyan net exports would fall.
Everybody let's thank Lionel for his help. He posted on Yahoo! Answers, yet posted no answer. Very impressive.Thanks, Lionel!