Exam 32: A Macroeconomic Theory of the Open Economy

If the U.S. government went from a budget deficit to a budget surplus then

Which of the following is the most likely result from an increase in a country's government budget surplus?

Other things the same, a decrease in the interest rate

A country has private saving of $500 billion, public saving of -$100 billion, domestic investment of $150 billion, and net capital outflow of $250 billion. What is its supply of loanable funds?

Suppose the U.S. supply of loanable funds shifts left. This will

An increase in the budget deficit causes domestic interest rates

In the open-economy macroeconomic model, if the supply of loanable funds shifts right

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

If at a given real interest rate desired national saving is $200 billion, domestic investment is $100 billion, and net capital outflow is $80 billion, then at that real interest rate in the loanable funds market there is a

A U.S. bank wants to buy euros in order to buy German bonds. In the open-economy macroeconomic model, this transaction would be part of

In the open-economy macroeconomic model, the supply of dollars in the market for foreign-currency exchange comes from

If the demand for loanable funds shifts right, then

In an open economy, the source for the demand for loanable funds is

If the Japanese government raised its budget deficit, then the yen would

If at a given real interest rate desired national saving is $60 billion, domestic investment is $30 billion, and net capital outflow is $20 billion, then at that real interest rate in the loanable funds market there is a

Other things the same, a decrease in the real interest rate

A rise in the government budget deficit

When a country imposes a trade quota, the demand for currency in the market for foreign exchange shifts to the right

Which of the following would shift the supply of dollars in the market for foreign-currency exchange of the open-economy macroeconomic model to the left?

Other things the same, an increase in the U.S. interest rate causes