Question 1

In the open-economy macroeconomic model, as the exchange rate rises,

Accepted Answer

A)   desired net exports fall, so the quantity of dollars supplied rise.
B)   desired net exports fall, so the quantity of dollars demanded falls.
C)   desired net exports rise ,so the quantity of dollars supplied falls.
D)   desired net exports rise, so the quantity of dollars demanded rises.E) None of the above
F) B) and D)

Question 2

Which of the following decreases if the U.S. removes an import quota on computer components?

Accepted Answer

A)   U.S. imports and U.S. exports.
B)   U.S. imports but not U.S. exports.
C)   U.S. exports but not U.S. imports.
D)   Neither U.S. exports nor U.S. imports.E) None of the above
F) A) and D)

Question 3

Other things the same, an increase in the U.S. interest rate

Accepted Answer

A)   raises net capital outflow which decreases the quantity of loanable funds demanded.
B)   raises net capital outflow which increases the quantity of loanable funds demanded.
C)   lowers net capital outflow which decreases the quantity of loanable funds demanded.
D)   lowers net capital outflow which increases the quantity of loanable funds demanded.E) A) and B)
F) A) and C)

Question 4

Other things the same, which of the following would a rise in the real interest rate raise: desired investment spending, desired national saving, desired net capital outflow?

Accepted Answer

desired na...

Exam 19: A Macroeconomic Theory of the Open Economy

Other things the same, an increase in the U.S. interest rate

Correct Answer
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Other things the same, which of the following would a rise in the real interest rate raise: desired investment spending, desired national saving, desired net capital outflow?

Correct Answer
verified
desired na...
View Answer

In the open-economy macroeconomic model, as the exchange rate rises,

Correct Answer
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Which of the following decreases if the U.S. removes an import quota on computer components?

Correct Answer
verified

Exam 19: A Macroeconomic Theory of the Open Economy

Other things the same, an increase in the U.S. interest rate

Correct AnswerverifiedShow Answer

Other things the same, which of the following would a rise in the real interest rate raise: desired investment spending, desired national saving, desired net capital outflow?

Correct Answerverifieddesired na...View AnswerShow Answer

In the open-economy macroeconomic model, as the exchange rate rises,

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Which of the following decreases if the U.S. removes an import quota on computer components?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
desired na...
View Answer

Correct Answer
verified

Correct Answer
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