Question 1

Net exports are:

Accepted Answer

A)  negatively related to domestic income, positively related to income in the rest of the world, and positively related to currency appreciation. 
B)  negatively related to domestic income, positively related to income in the rest of the world, and positively related to currency depreciation. 
C)  positively related to domestic income, positively related to income in the rest of the world, and positively related to currency appreciation. 
D)  positively related to domestic income, positively related to income in the rest of the world, and positively related to currency depreciation. 
A)  negatively related to domestic income, positively related to income in the rest of the world, and positively related to currency appreciation. 
B)  negatively related to domestic income, positively related to income in the rest of the world, and positively related to currency depreciation. 
C)  positively related to domestic income, positively related to income in the rest of the world, and positively related to currency appreciation. 
D)  positively related to domestic income, positively related to income in the rest of the world, and positively related to currency depreciation.

Question 2

The value at which one currency can be exchanged for another currency is called the real exchange rate.

Accepted Answer

A) True 
 B)False

Question 3

In 1997, the Thai government was unable to maintain its exchange rate given the amount of international reserves.

Accepted Answer

A) True 
 B)False

Question 4

An index of the weighted exchange value of the U.S. dollar versus the currencies of a broad group of major
U.S. trading partners is called the trade-weighted dollar.

Accepted Answer

A) True 
 B)False

Question 5

An index of the weighted exchange value of the U.S. dollar versus the currencies of a broad group of major U.S. trading partners is called:

Accepted Answer

A)  trade-weighted dollar. 
B)  exchange-weighted dollar. 
C)  dollarization. 
D)  bilateral dollar. 
A)  trade-weighted dollar. 
B)  exchange-weighted dollar. 
C)  dollarization. 
D)  bilateral dollar.

Question 6

Imports are:

Accepted Answer

A)  positively related to income in the rest of the world and currency appreciation. 
B)  positively related to income in the rest of the world and currency depreciation. 
C)  positively related to domestic income and currency appreciation. 
D)  positively related to domestic income and currency depreciation. 
A)  positively related to income in the rest of the world and currency appreciation. 
B)  positively related to income in the rest of the world and currency depreciation. 
C)  positively related to domestic income and currency appreciation. 
D)  positively related to domestic income and currency depreciation.

Question 7

The political stability of countries has an impact on the foreign exchange market.

Accepted Answer

A) True 
 B)False

Question 8

Using the foreign exchange market diagram, graphically illustrate and explain the impact of an increase in foreign income, all else constant, on the exchange rate.

Accepted Answer

An increase in foreign income means the

Question 9

If there is a current account surplus, then there is a capital account deficit.

Accepted Answer

A) True 
 B)False

Net exports are:

The value at which one currency can be exchanged for another currency is called the real exchange rate.

In 1997, the Thai government was unable to maintain its exchange rate given the amount of international reserves.

An index of the weighted exchange value of the U.S. dollar versus the currencies of a broad group of major U.S. trading partners is called the trade-weighted dollar.

An index of the weighted exchange value of the U.S. dollar versus the currencies of a broad group of major U.S. trading partners is called:

Imports are:

The political stability of countries has an impact on the foreign exchange market.

Using the foreign exchange market diagram, graphically illustrate and explain the impact of an increase in foreign income, all else constant, on the exchange rate.

If there is a current account surplus, then there is a capital account deficit.

Managers and Economics

Demand, Supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, Firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

The Aggregate Model of the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

Filters

Exam 15: International and Balance of Payments Issues in the Macro Economy

Net exports are:

The value at which one currency can be exchanged for another currency is called the real exchange rate.

In 1997, the Thai government was unable to maintain its exchange rate given the amount of international reserves.

An index of the weighted exchange value of the U.S. dollar versus the currencies of a broad group of major U.S. trading partners is called the trade-weighted dollar.

An index of the weighted exchange value of the U.S. dollar versus the currencies of a broad group of major U.S. trading partners is called:

Imports are:

The political stability of countries has an impact on the foreign exchange market.

Using the foreign exchange market diagram, graphically illustrate and explain the impact of an increase in foreign income, all else constant, on the exchange rate.

If there is a current account surplus, then there is a capital account deficit.

Managers and Economics

Demand, Supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, Firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

The Aggregate Model of the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

Filters