Exam 36: Macro Policy in a Global Setting

Monetary and fiscal policies have little effect on the trade deficit.

In the short run, a trade deficit allows more consumption, but in the long run, a trade deficit is a problem because:

If a country wants to prevent its exchange rate from falling, it could:

Considering only its direct effect on income, an expansionary monetary policy tends to:

All of the following are international (as opposed to domestic) policy goals for the United States except:

A stronger dollar would be a good policy if the U.S.government wanted to:

Internationalization of U.S.debt is:

Expansionary fiscal policy increases income, which increases imports and hence the size of the trade deficit.

If a country's trade deficit increases, then:

In the short run, the net effect of an expansionary monetary policy is a lower trade deficit.

A U.S.trade deficit will cause all of the following phenomena except:

A rising exchange rate raises U.S.living standards by:

Crowding out can be avoided temporarily if the government's debt is internationalized.

In the early 2000s, the George Bush administration passed a series of tax cuts and spending increases to fight a recession.This combination of policies most likely:

Considering an economy with a current trade surplus and considering only the direct effect on income, an expansionary monetary policy tends to:

In 2015 the euro depreciated more than 30 percent against the dollar.As a result, European:

When the value of the U.S.dollar fell in the mid-1990s, it:

If Japan is experiencing inflation and the United States is experiencing recession, international policy coordination would be most likely to occur if it required:

A stronger dollar would be a good policy if the U.S.government wanted to:

If a country wants maximum flexibility to pursue its domestic macroeconomic goals, it: