Question 1

In the open-economy macroeconomic model,if a country's interest rate rises,then its

Accepted Answer

A)  net capital outflow and net exports rise.
B)  net capital outflow rises and its net exports fall.
C)  net capital outflow falls and its net exports rise.
D)  net capital outflow and net exports fall.E) A) and C)
F) B) and C)

Question 2

If the budget deficit increases,then

Accepted Answer

A)  an increase in the interest rate increases net capital outflow.
B)  an increase in the interest rate decreases net capital outflow.
C)  a decrease in the interest rate increases net capital outflow.
D)  a decrease in the interest rate decreases net capital outflow.E) None of the above
F) B) and C)

Question 3

In the open-economy macroeconomic model,the key determinant of net capital outflow is

Accepted Answer

A)  the real exchange rate.When the real exchange rate rises,net capital outflow rises.
B)  the real exchange rate.When the real exchange rate rises,net capital outflow falls.
C)  the real interest rate.When the real interest rate rises,net capital outflow rises.
D)  the real interest rate.When the real interest rate rises,net capital outflow falls.E) None of the above
F) A) and C)

Question 4

In the open economy macroeconomic model,the price that balances supply and demand in the market for foreign-currency exchange model is the

Accepted Answer

A)  nominal exchange rate.
B)  nominal interest rate.
C)  real exchange rate.
D)  real interest rate.E) All of the above
F) B) and C)

Question 5

State what,if anything,each of the following does to the supply or demand of loanable funds.
a.net capital outflow increases at each interest rate
b.domestic investment increases at each interest rate
c.the government deficit increases
d.private saving increases

Accepted Answer

a.
the demand for loanable fu...

Question 6

In the long run,import quotas increase net exports.

Accepted Answer

A) True 
 B)False

Question 7

If a country's budget deficit rises,then its exchange rate

Accepted Answer

A)  rises,so its imports rise.
B)  rises,so its imports fall.
C)  falls,so its imports rise.
D)  falls so its imports fall.E) A) and B)
F) None of the above

Exam 33: A Macroeconomic Theory of the Open Economy

If a country's budget deficit rises,then its exchange rate

Correct Answer
verified

In the open-economy macroeconomic model,the key determinant of net capital outflow is

Correct Answer
verified

If the budget deficit increases,then

Correct Answer
verified

In the long run,import quotas increase net exports.

Correct Answer
verified

In the open-economy macroeconomic model,if a country's interest rate rises,then its

Correct Answer
verified

In the open economy macroeconomic model,the price that balances supply and demand in the market for foreign-currency exchange model is the

Correct Answer
verified

State what,if anything,each of the following does to the supply or demand of loanable funds. a.net capital outflow increases at each interest rate b.domestic investment increases at each interest rate c.the government deficit increases d.private saving increases

Correct Answer
verified
a.
the demand for loanable fu...
View Answer

Exam 33: A Macroeconomic Theory of the Open Economy

If a country's budget deficit rises,then its exchange rate

Correct AnswerverifiedShow Answer

In the open-economy macroeconomic model,the key determinant of net capital outflow is

Correct AnswerverifiedShow Answer

If the budget deficit increases,then

Correct AnswerverifiedShow Answer

In the long run,import quotas increase net exports.

Correct AnswerverifiedShow Answer

In the open-economy macroeconomic model,if a country's interest rate rises,then its

Correct AnswerverifiedShow Answer

In the open economy macroeconomic model,the price that balances supply and demand in the market for foreign-currency exchange model is the

Correct AnswerverifiedShow Answer

State what,if anything,each of the following does to the supply or demand of loanable funds. a.net capital outflow increases at each interest rate b.domestic investment increases at each interest rate c.the government deficit increases d.private saving increases

Correct Answerverifieda. the demand for loanable fu...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.
the demand for loanable fu...
View Answer