What do trade policies do to the standard of living?

Trade policies reduce both imports and e...

What is the source of the supply of dollars in the market for foreign-currency exchange?

The answer of What is the source of the supply...

Which curve in the market for foreign-currency exchange shifts and which direction does it shift if the government budget deficit increases? Explain why an increase in the budget deficit shifts this curve.

The supply curve in the market for forei...

What happens to each of the following if investment becomes less desirable at each interest rate? A.the interest rate B.net capital outflow C.the exchange rate

The interest rate falls, net capital outflow rises, the exchange rate falls.

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

a.the demand for loanable fund...

What are the sources of the demand for loanable funds? What happens to the quantity of loanable funds demanded when the interest rate rises?

The sources of the demand for ...

What happens to domestic investment as the real interest rate rises? Explain your answer.

As the real interest rate rise...

Other things the same,if the U.S.interest rate rises,what happens to the net capital outflow of other countries?

As the U.S. real interest rate rises, U.S. bonds become more attractive to both domestic and foreign residents. The resulting reduction in the purchase of foreign bonds by U.S. residents and increase in the purchase of U.S bonds by foreign residents both increase the net capital outflow of foreign countries.

If people in the U.S.choose to save a smaller percentage of income,what will happen to the interest rate,net capital outflow,the exchange rate,and net exports?

The interest rate will rise, n...

Political events convince people that the assets of country x are now riskier.As a result of this change which curves in the open-economy macroeconomic model shift and which direction do they shift for country x?

The demand curve for loanable ...

Exam 19: A Macroeconomic Theory of the Open Economy: Part A

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Exam 19: A Macroeconomic Theory of the Open Economy: Part A

What do trade policies do to the standard of living?

Correct Answer
verified
Trade policies reduce both imports and e...
View Answer

If a country's government moves from a budget deficit to a budget surplus,which curve in the market for loanable funds shifts and which direction does it shift? What happens to the interest rate?

Correct Answer
verified
The supply of loanab...
View Answer

If the exchange rate falls, domestic goods become relatively ____ expensive. This change in the affordability of domestic goods makes domestic goods _ attractive to domestic residents. So, _ __.

Correct Answer
verified
less, more...
View Answer

What happens to each of the following if investment becomes more desirable at each interest rate? A.the interest rate B.net capital outflow C.the exchange rate

Correct Answer
verified
The interest rate ri...
View Answer

What is the source of the supply of dollars in the market for foreign-currency exchange?

Correct Answer
verified

What happens to each of the following if the supply of loanable funds shifts left? A.the interest rate B.net capital outflow C.the exchange rate

Correct Answer
verified
The interest rate ri...
View Answer

Which curve in the market for foreign-currency exchange shifts and which direction does it shift if the government budget deficit increases? Explain why an increase in the budget deficit shifts this curve.

Correct Answer
verified
The supply curve in the market for forei...
View Answer

What happens to each of the following if investment becomes less desirable at each interest rate? A.the interest rate B.net capital outflow C.the exchange rate

Correct Answer
verified
The interest rate falls, net capital outflow rises, the exchange rate falls.

Other things the same,which curve in the market for foreign-currency exchange shifts and which direction does it shift if net capital outflow rises?

Correct Answer
verified
The supply curve shifts right.

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 fund...
View Answer

What are the sources of the demand for loanable funds? What happens to the quantity of loanable funds demanded when the interest rate rises?

Correct Answer
verified
The sources of the demand for ...
View Answer

What happens to domestic investment as the real interest rate rises? Explain your answer.

Correct Answer
verified
As the real interest rate rise...
View Answer

A country recently had 500 billion euros of national saving and 200 billion euros of domestic investment.What was its net capital outflow? What was its quantity of loanable funds demanded?

Correct Answer
verified
300 billio...
View Answer

Other things the same, if the U.S. interest rate rises, U.S. assets become __ attractive. So, desired net capital outflow _. This change in net capital outflow, shifts the __ curve in the market for foreign-currency exchange to the .

Correct Answer
verified
more, fall...
View Answer

An economy recently had 800 billion euros of saving and 600 billion euros of net capital outflow.What was its investment? What was its quantity of loanable funds supplied?

Correct Answer
verified
200 billio...
View Answer

Other things the same,if the U.S.interest rate rises,what happens to the net capital outflow of other countries?

If people in the U.S.choose to save a smaller percentage of income,what will happen to the interest rate,net capital outflow,the exchange rate,and net exports?

Correct Answer
verified
The interest rate will rise, n...
View Answer

A country reduces its government budget deficit and also makes political reforms that lead people to believe this country's assets are less risky.Given the combination of a reduced deficit and lower asset risk,what happens to the interest rate?

Correct Answer
verified
The intere...
View Answer

If the exchange rate rises, domestic goods become relatively ____ expensive. This change in the affordability of domestic goods makes domestic goods _ attractive to foreigners. So, _ __.

Correct Answer
verified
more, less...
View Answer

Political events convince people that the assets of country x are now riskier.As a result of this change which curves in the open-economy macroeconomic model shift and which direction do they shift for country x?

Correct Answer
verified
The demand curve for loanable ...
View Answer

Exam 19: A Macroeconomic Theory of the Open Economy: Part A

What do trade policies do to the standard of living?

Correct AnswerverifiedTrade policies reduce both imports and e...View AnswerShow Answer

If a country's government moves from a budget deficit to a budget surplus,which curve in the market for loanable funds shifts and which direction does it shift? What happens to the interest rate?

Correct AnswerverifiedThe supply of loanab...View AnswerShow Answer

If the exchange rate falls, domestic goods become relatively ______ expensive. This change in the affordability of domestic goods makes domestic goods _____ attractive to domestic residents. So, _______ ______.

Correct Answerverifiedless, more...View AnswerShow Answer

What happens to each of the following if investment becomes more desirable at each interest rate? A.the interest rate B.net capital outflow C.the exchange rate

Correct AnswerverifiedThe interest rate ri...View AnswerShow Answer

What is the source of the supply of dollars in the market for foreign-currency exchange?

Correct AnswerverifiedShow Answer

What happens to each of the following if the supply of loanable funds shifts left? A.the interest rate B.net capital outflow C.the exchange rate

Correct AnswerverifiedThe interest rate ri...View AnswerShow Answer

Which curve in the market for foreign-currency exchange shifts and which direction does it shift if the government budget deficit increases? Explain why an increase in the budget deficit shifts this curve.

Correct AnswerverifiedThe supply curve in the market for forei...View AnswerShow Answer

What happens to each of the following if investment becomes less desirable at each interest rate? A.the interest rate B.net capital outflow C.the exchange rate

Correct AnswerverifiedThe interest rate falls, net capital outflow rises, the exchange rate falls.

Other things the same,which curve in the market for foreign-currency exchange shifts and which direction does it shift if net capital outflow rises?

Correct AnswerverifiedThe supply curve shifts right.

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

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Correct AnswerverifiedThe sources of the demand for ...View AnswerShow Answer

What happens to domestic investment as the real interest rate rises? Explain your answer.

Correct AnswerverifiedAs the real interest rate rise...View AnswerShow Answer

A country recently had 500 billion euros of national saving and 200 billion euros of domestic investment.What was its net capital outflow? What was its quantity of loanable funds demanded?

Correct Answerverified300 billio...View AnswerShow Answer

Other things the same, if the U.S. interest rate rises, U.S. assets become ____ attractive. So, desired net capital outflow _____. This change in net capital outflow, shifts the __________ curve in the market for foreign-currency exchange to the ______.

Correct Answerverifiedmore, fall...View AnswerShow Answer

An economy recently had 800 billion euros of saving and 600 billion euros of net capital outflow.What was its investment? What was its quantity of loanable funds supplied?

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Other things the same,if the U.S.interest rate rises,what happens to the net capital outflow of other countries?

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Correct AnswerverifiedThe interest rate will rise, n...View AnswerShow Answer

A country reduces its government budget deficit and also makes political reforms that lead people to believe this country's assets are less risky.Given the combination of a reduced deficit and lower asset risk,what happens to the interest rate?

Correct AnswerverifiedThe intere...View AnswerShow Answer

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View Answer

Correct Answer
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less, more...
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Correct Answer
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View Answer

Correct Answer
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Correct Answer
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The supply curve in the market for forei...
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The interest rate falls, net capital outflow rises, the exchange rate falls.

Correct Answer
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View Answer

Correct Answer
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The sources of the demand for ...
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As the real interest rate rise...
View Answer

Correct Answer
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300 billio...
View Answer

Other things the same, if the U.S. interest rate rises, U.S. assets become __ attractive. So, desired net capital outflow _. This change in net capital outflow, shifts the __ curve in the market for foreign-currency exchange to the .

Correct Answer
verified
more, fall...
View Answer

Correct Answer
verified
200 billio...
View Answer

Correct Answer
verified
The interest rate will rise, n...
View Answer

Correct Answer
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The intere...
View Answer

If the exchange rate rises, domestic goods become relatively ____ expensive. This change in the affordability of domestic goods makes domestic goods _ attractive to foreigners. So, _ __.

Correct Answer
verified
more, less...
View Answer

Correct Answer
verified
The demand curve for loanable ...
View Answer