Exam 32: A Macroeconomic Theory of the Open Economy

At the equilibrium real interest rate in the open-economy macroeconomic model

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

Which of the following is a consistent response to an increase in the U.S.real interest rate?

In 2002,the United States placed higher tariffs on imports of steel.According to the open-economy macroeconomic model this policy should have

Which of the following could explain a decrease in the U.S.real exchange rate?

Which of the following would not be a consequence of an increase in the U.S.government budget deficit?

When Mexico suffered from capital flight in 1994,the U.S.real interest rate

If a country institutes policies that lead domestic firms to desire more capital stock

Although trade policies do not affect a country's overall trade balance,they do affect specific firms and industries.

Which of the following would make both the equilibrium real interest rate and the equilibrium quantity of loanable funds increase?

If a country's budget deficit rises,then its exchange rate

According to the open-economy macroeconomic model,if the U.S.government budget deficit increases,then both U.S.domestic investment and U.S.net capital outflow decrease.

In the open-economy macroeconomic model,if investment demand increases,then

The country of Frequencia is politically very stable and has a long tradition of respecting property rights.If several other countries suddenly became politically unstable,we would expect Frequencia's

In the open-economy macroeconomic model,other things the same,when a U.S.resident imports a foreign good,the demand for dollars in the foreign-currency exchange market decreases.

In the open-economy macroeconomic model,the amount of net capital outflow represents the quantity of dollars

Other things the same,if the U.S.interest rate falls,then U.S.residents will want to purchase

If the supply of dollars in the market for foreign-currency exchange shifts right,then the exchange rate

Which of the following increases if the U.S.imposes an import quota on computer components?

Which of the following will decrease U.S.net capital outflow?