Exam 29: Macroeconomics in an Open Economy

If the exchange rate between the Mexican peso and the U.S. dollar expressed in terms of pesos per dollar is 13.5 pesos = 1 dollar, what is the exchange rate when expressed in terms of dollars per peso?

Figure 29-1 -Refer to Figure 29-1. The French fall in love with California wines and triple their purchases of this beverage. Assuming all else remains constant, this would be represented as a movement from

Which of the following would cause the dollar to depreciate?

Explain the relationship between net exports and net foreign investment.

An economy that has interactions in trade or finance with other economies is referred to as

If the exchange rate changes from $1.45 = 1 euro to $1.37 = 1 euro, then

Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the foreign exchange market?

Which of the following will shift the demand for the euro to the right?

Since 1999, the capital account has recorded

Persistent current account deficits in the United States

A rise in the dollar price of the Chinese yuan signals an appreciation of the yuan and a depreciation of the dollar.

If the Fed is using policy to combat inflation, what is likely to happen in the foreign exchange market and to the foreign exchange value of the dollar?

If net foreign investment in the United States is negative, how must national saving and domestic investment be related?

How might a U.S. federal budget surplus affect the balance of trade? (Assume exchange rates are stated in terms of foreign currency per U.S. dollar.)

A Canadian oil company hires geological survey services from the United States. If all else remains equal, this will

How will contractionary monetary policy in Japan affect the demand for the yen and the supply of the yen in the foreign exchange market?

What impact might an increase in the budget deficit have on interest rates and exchange rates?