Exam 20: Exchange Rates and The Macroeconomy

The main input into the production of Starbuck's coffee is imported coffee beans.If the dollar depreciates,how will this affect the U.S.retail coffee market?

Figure 20-3 -Which of the situations illustrated in Figure 20-3 shows the effects of a currency appreciation leading to real GDP growth?

Expansionary fiscal policy in an open economy

International trade tends to lower the value of the multiplier because

The trade deficit is the mirror image of required capital inflows.

International capital flows tend to reduce the impact of monetary policy.

A currency appreciation

The government budget deficit must be equal to the surplus

What are the results of a contractionary monetary policy in an open economy with floating exchange rates and internationally mobile capital?

One of the results of the strong economic growth in the United States relative to the rest of the world is a

International capital flows are purchases and sales of ____ across national borders.

From 1992,America's trade performance was marked by a(n)

An increase in the price level in the economies of U.S.trading partners will cause the aggregate expenditures function in the United States to

The appreciation of the dollar in the late 1990s shifted the U.S.aggregate supply curve outward.

In the mid-1990s,real interest rates fell in the United States.This was the result of budget deficit

In Table 20-2,assume that exports rise to $900.What is the new equilibrium GDP?

The dramatic rise in the dollar between 1981 and 1986 was the result of a(n)

Did the large U.S.budget deficits in the 1980s "crowd out" investment as some economists had predicted?

Figure 20-5 -Which of the graphs in Figure 20-5 are consistent with a depreciation of the U.S.dollar and an increase in net exports caused by a decrease in U.S.interest rates?

An expansionary monetary policy will