Exam 31: Open-Economy Macroeconomics: Basic Concepts

If a country changes its corporate tax laws so that domestic businesses build and manage more business in other countries, then the net capital outflow of that country

Use the (hypothetical) information in the following table to answer the following questions. Table 31-2 -Refer to Table 31-2. In real terms, U.S. goods are less expensive than goods in which country(ies)?

If a country changes its corporate tax laws so that foreign businesses build and manage more business in that country, then the net capital outflow of that country

In Ireland, a pint of beer costs 3 euros. In Australia, a pint of beer costs 4 Australian dollars. If the exchange rate is .8 euros per Australian dollar, what is the real exchange rate?

Other things the same, an increase in the real exchange rate raises U.S. net exports.

According to purchasing-power parity, if over the course of a year the price level in the U.S. rises more than in Canada, then which of the following rises?

Goods that cost 1/5 of one dollar in the U.S. cost one kroner in Denmark, the real exchange rate would be computed as how many Danish goods per U.S. goods?

A tall latte in China costs 30 yuan. The same latte in the U.S. costs 4 dollars. If the exchange rate is 6.5 yuan per dollar then, the real exchange rate is

If prices in the U.S. rise faster than prices in the United Kingdom, then according to the doctrine of purchasing-power parity the U.S. nominal exchange rate should rise

If the number of Japanese yen a dollar buys falls, but neither country's price level changes, then the real exchange rate

If the price levels in the U.S and in Canada are unchanged, but the nominal exchange rate (Canadian dollars per U.S. dollar) rises, then

Other things the same, if a country saves more, then

If saving is greater than domestic investment, then

If the exchange rate rises from .65 British pounds per dollar to .70 pounds per dollar, then compared to British goods, U.S. goods become

The dollar is said to appreciate against the euro if

The dollar is said to depreciate against the euro if

Bill, a U.S. citizen, pays a Spanish architect to design a metal casting factory. Which country's exports increase?

If the Canadian nominal exchange rate does not change, but prices rise faster abroad than in Canada, then the Canadian real exchange rate

Movies are a major export of the U.S.

A company in Panama pays for a U.S. architect to design a factory building. By itself this transaction