Exam 32: A Macroeconomic Theory of the Open Economy

If the supply of loanable funds shifts right,then

When a country's government budget deficit decreases,

In the open-economy macroeconomic model,a higher domestic interest rate reduces the quantity of loanable funds demanded

If the real exchange rate for the dollar is below the equilibrium level,the quantity of dollars supplied in the market for foreign-currency exchange is

If the real interest rate were above the equilibrium rate,there would be a shortage of loanable funds.

Suppose that U.S.investors decide that investment opportunities in African countries have improved.What happens to U.S.net capital outflow? What happens to the U.S.real interest rate?

In an open economy,the demand for loanable funds comes from both domestic investment and net capital outflow.

When Mexico suffered from capital flight in 1994,Mexico's net exports

If interest rates rose more in Germany than in the U.S. ,then other things the same

If there is a shortage of loanable funds,then

Which of the following contains a list only of things that increase when the budget deficit of the U.S.decreases?

In the open-economy macroeconomic model,a higher U.S.real exchange rate makes

In the open-economy macroeconomic model,if the supply of loanable funds increases,net capital outflow

Figure 19-1 -Refer to Figure 19-1.The loanable funds market is in equilibrium at

If the U.S.government increased its deficit,then

In the open-economy macroeconomic model,the market for loanable funds identity can be written as

From 2001 to 2004,the U.S.government went from a budget surplus to a budget deficit.According to the open-economy macroeconomic model,this should have decreased

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

If a quota on lumber were implemented,then at the original exchange rate there would be a

Suppose that the U.S.imposed an import quota on beef.Sales of U.S.beef producers would