Question 1

In 2006 the U.S. had a large trade

Accepted Answer

A)   surplus and a large net capital inflow.
B)   surplus and a large net capital outflow.
C)   deficit and a large net capital inflow.
D)   deficit and a large net capital outflow.E) B) and C)
F) A) and D)

Question 2

Net capital outflow is defined as the purchase of

Accepted Answer

A)   foreign assets by domestic residents minus the purchase of domestic assets by foreign residents.
B)   foreign assets by domestic residents minus the purchase of foreign goods and services by domestic residents.
C)   domestic assets by foreign residents minus the purchase of domestic goods and services by foreign residents.
D)   domestic assets by foreign residents minus the purchase of foreign assets by domestic residents.E) A) and D)
F) None of the above

Question 3

Which of the following both reduce net exports?

Accepted Answer

A)   exports rise, imports rise
B)   exports rise, imports fall
C)   imports rise, exports rise
D)   imports rise, exports fallE) All of the above
F) None of the above

Question 4

Suppose that the real exchange rate between the United States and Kenya is defined in terms of baskets of goods. Other things the same, which of the following will increase the real exchange rate (that is increase the number of baskets of Kenyan goods a basket of U.S. goods buys) ?

Accepted Answer

A)   an increase in the number of Kenyan shillings that can be purchased with a dollar
B)   an increase in the price of U.S. baskets of goods
C)   a decrease in the price in Kenyan shillings of Kenyan goods
D)   All of the above are correct.E) A) and B)
F) B) and C)

Question 5

If a country sells more goods and services abroad than it purchases abroad, it has positive net exports and a trade surplus.

Accepted Answer

A) True 
 B)False

Question 6

If there is a trade deficit, then

Accepted Answer

A)   saving is greater than domestic investment and Y > C + I + G.
B)   saving is greater than domestic investment and Y 
C)   saving is less than domestic investment and Y > C +I + G.
D)   saving is less than domestic investment and Y E) All of the above
F) None of the above

Question 7

Which of the following does purchasing-power parity imply?

Accepted Answer

A)   The purchasing power of the dollar is the same in the U.S. as in foreign countries.
B)   The price of domestic goods relative to foreign goods cannot change.
C)   The nominal exchange rate is the ratio of U.S. prices to foreign prices.
D)   All of the above are correct.E) None of the above
F) B) and C)

Exam 13: Open-Economy Macroeconomic Models

Which of the following both reduce net exports?

Correct Answer
verified

Net capital outflow is defined as the purchase of

Correct Answer
verified

If a country sells more goods and services abroad than it purchases abroad, it has positive net exports and a trade surplus.

Correct Answer
verified

In 2006 the U.S. had a large trade

Correct Answer
verified

Which of the following does purchasing-power parity imply?

Correct Answer
verified

If there is a trade deficit, then

Correct Answer
verified

Suppose that the real exchange rate between the United States and Kenya is defined in terms of baskets of goods. Other things the same, which of the following will increase the real exchange rate (that is increase the number of baskets of Kenyan goods a basket of U.S. goods buys) ?

Correct Answer
verified

Exam 13: Open-Economy Macroeconomic Models

Which of the following both reduce net exports?

Correct AnswerverifiedShow Answer

Net capital outflow is defined as the purchase of

Correct AnswerverifiedShow Answer

If a country sells more goods and services abroad than it purchases abroad, it has positive net exports and a trade surplus.

Correct AnswerverifiedShow Answer

In 2006 the U.S. had a large trade

Correct AnswerverifiedShow Answer

Which of the following does purchasing-power parity imply?

Correct AnswerverifiedShow Answer

If there is a trade deficit, then

Correct AnswerverifiedShow Answer

Suppose that the real exchange rate between the United States and Kenya is defined in terms of baskets of goods. Other things the same, which of the following will increase the real exchange rate (that is increase the number of baskets of Kenyan goods a basket of U.S. goods buys) ?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified