Exam 32: A Macroeconomic Theory of the Open Economy

In the open-economy macroeconomic model,the market for loanable funds equates national saving with

An increase in real interest rates in the United States changes the quantity of loanable funds demanded because

Which of the following is included in the demand for dollars in the market for foreign-currency exchange in the open-economy macroeconomic model?

A rise in the government budget deficit

Figure 19-4 -Refer to Figure 19-4.Suppose that the government goes from a budget surplus to a budget deficit.The effects of the change could be illustrated by

An increase in the budget deficit

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

If the U.S.government imposes an import quota on French wine,U.S.net exports will

U.S.corporation Well's Petroleum borrows money to build an oil well in Texas and to build another in Venezuela.Borrowing for which well is included in the demand for loanable funds in the U.S.?

Other things the same,in the open-economy macroeconomic model,which of the following would make India's net capital outflow increase?

If the U.S.were to impose import quotas

In the open-economy macroeconomic model,if a country's interest rate rises,its net capital outflow

If the U.S.government imposes a quota on toy imports,then

A government budget deficit

If interest rates rise in the U.S. ,then other things the same

Which of the following is most likely to increase U.S.exports?

If a U.S.resident purchases a foreign bond,her transactions are included

Suppose a country experiences capital flight.Of the demand for loanable funds and the supply of currency in the market for foreign-currency exchange,which shifts right?

When a country experiences capital flight,which of the following rise?

When a country imposes an import quota,its