Exam 20: Exchange Rates and The Macroeconomy

If (T − G)= (X − IM),then (S − I)

A recession abroad would cause U.S.net exports to rise.

Currently,the United States imports more than it exports.

Figure 20-9 -In Figure 20-9,the C + I + G + (X − IM)₁ line is flatter than the C + I + G + (X − IM)₀ line because the

If Asian economies suffer a serious economic slump,U.S.net exports will

Expansionary fiscal policy in an open economy has a

Figure 20-2 -Which of the following explains the movements in Figure 20-2?

For those nations who fixed their currencies' exchange rates to the U.S.dollar,the rise of the dollar during the 90's was very good news,​

Which of the following usually leads to currency appreciation?

Following the economic crisis in 1994-1995,the Mexican peso fell sharply in value.What will be the main economic effects in Mexico of such an exchange rate change?

If the United States increased its budget deficit,and it is at or near full employment,the most likely effect is to crowd

Figure 20-9 -Figure 20-9 shows aggregate expenditures when net exports are fixed and aggregate expenditures are variable.The autonomous spending multiplier is

What important lesson did American economists learn in the 1980s and again in 2001-2003?

The U.S.trade deficit is made possible,in part,because of foreigners' demand for U.S.financial assets.

For a major country with extensive capital flows,what is the effect of a decrease in interest rates?

For a major country with extensive capital flows,what is the effect of an increase in interest rates?

A currency appreciation should

Despite the monetary expansion of the 1992-2000 period,the inflation rate

Protectionism may fail to reduce a current account deficit because it

Figure 20-6 -In Figure 20-6,an expansive monetary policy in a closed economy results in an equilibrium at point E.In our open economy,allowing for the induced change in the currency exchange rate,the final equilibrium will be at a point like