Question 1

All of the following statements are correct except which one?

Accepted Answer

A)  U.S. currency is now accepted, with relatively few exceptions, in most major industrialized nations. 
B)  World capital markets have now advanced to allow relatively easy borrowing across borders. 
C)  Black or curb markets frequently offer the traveler a better deal than legitimate enterprises. 
D)  Both a and b. 
E)  Both b and c. 
A)  U.S. currency is now accepted, with relatively few exceptions, in most major industrialized nations. 
B)  World capital markets have now advanced to allow relatively easy borrowing across borders. 
C)  Black or curb markets frequently offer the traveler a better deal than legitimate enterprises. 
D)  Both a and b. 
E)  Both b and c.

Question 2

By the mid 1990s, real GDP in Japan was percent below its
Potential.

Accepted Answer

A)  5 
B)  10 
C)  15 
D)  20 
E)  25 
A)  5 
B)  10 
C)  15 
D)  20 
E)  25

Question 3

Which of the following events did not strain the European monetary system EMS) of the 1980s and 1990s and thus contribute to the formation of the Eurozone.

Accepted Answer

A)  Repeated devaluation of the French franc 
B)  The reunification of East and West Germany 
C)  The United Kingdom's departure from the EMS 
D)  All of the above 
E)  None of the above 
A)  Repeated devaluation of the French franc 
B)  The reunification of East and West Germany 
C)  The United Kingdom's departure from the EMS 
D)  All of the above 
E)  None of the above

Question 4

Countries with inconvertible currencies generally have no need to

Accepted Answer

A)  increase restrictions on their financial markets. 
B)  open up currency transactions on an international basis. 
C)  encourage greater capital flows across their borders. 
D)  stimulate the flow of goods and services between them and their trading partners. 
E)  both c and d. 
A)  increase restrictions on their financial markets. 
B)  open up currency transactions on an international basis. 
C)  encourage greater capital flows across their borders. 
D)  stimulate the flow of goods and services between them and their trading partners. 
E)  both c and d.

Question 5

Under the Bretton Woods Agreement, appreciation of a country's currency against the dollar necessitated

Accepted Answer

A)  a contractionary shift in that country's monetary policy by buying dollar securities. 
B)  an expansionary shift in that country's fiscal policy by increasing its government's share of domestic spending. 
C)  an expansionary shift in that country's monetary policy by buying dollar securities. 
D)  a contractionary shift in that country's fiscal policy by reducing its government's share of domestic spending. 
E)  an expansionary shift in that country's monetary policy by selling dollar securities. 
A)  a contractionary shift in that country's monetary policy by buying dollar securities. 
B)  an expansionary shift in that country's fiscal policy by increasing its government's share of domestic spending. 
C)  an expansionary shift in that country's monetary policy by buying dollar securities. 
D)  a contractionary shift in that country's fiscal policy by reducing its government's share of domestic spending. 
E)  an expansionary shift in that country's monetary policy by selling dollar securities.

Question 6

The United States, Germany, Great Britain, France, and Japan met in 1985 to discuss a currency problem. Which of the following accurately describes their agreement and its results?

Accepted Answer

A)  They agreed to intervene to increase the value of the dollar. The dollar responded to the intervention by falling. 
B)  They agreed to intervene to increase the value of the dollar. The dollar responded by increasing in value by more than expected. 
C)  They agreed to intervene to reduce the value of the dollar. The dollar responding by rising in value. 
D)  They agreed to intervene to reduce the value of the dollar. The dollar responded by falling a great deal. 
E)  None of the above. 
A)  They agreed to intervene to increase the value of the dollar. The dollar responded to the intervention by falling. 
B)  They agreed to intervene to increase the value of the dollar. The dollar responded by increasing in value by more than expected. 
C)  They agreed to intervene to reduce the value of the dollar. The dollar responding by rising in value. 
D)  They agreed to intervene to reduce the value of the dollar. The dollar responded by falling a great deal. 
E)  None of the above.

Question 7

Restoring economic growth in Japan requires progress in each of the areas listed below except

Accepted Answer

A)  restoring inflation. 
B)  increasing the growth rate of the money supply. 
C)  reducing the volume of nonperforming loans. 
D)  increasing productivity in food processing industries. 
E)  none of the above. 
A)  restoring inflation. 
B)  increasing the growth rate of the money supply. 
C)  reducing the volume of nonperforming loans. 
D)  increasing productivity in food processing industries. 
E)  none of the above.

Question 8

Each of the following countries has sophisticated, intergrated financial markets except

Accepted Answer

A)  Britain. 
B)  China. 
C)  the Eurozone. 
D)  Japan. 
E)  the United States. 
A)  Britain. 
B)  China. 
C)  the Eurozone. 
D)  Japan. 
E)  the United States.

Question 9

The Eurozone includes each of the following countries except

Accepted Answer

A)  Belgium. 
B)  Ireland. 
C)  Italy. 
D)  Spain. 
E)  Switzerland. 
A)  Belgium. 
B)  Ireland. 
C)  Italy. 
D)  Spain. 
E)  Switzerland.

Question 10

The indirect channels) through which higher exchange rates can cause the central banks using a Taylor rule to lower interest rates are

Accepted Answer

A)  increased positive output gaps. 
B)  higher inflation relative to targeted inflation. 
C)  decreased negative output gaps. 
D)  decreased positive output gaps. 
E)  none of the above. 
A)  increased positive output gaps. 
B)  higher inflation relative to targeted inflation. 
C)  decreased negative output gaps. 
D)  decreased positive output gaps. 
E)  none of the above.

Question 11

The world financial and monetary system consists of several large economies with sophisticated financial markets. The currencies of four major participants include all but the

Accepted Answer

A)  yen. 
B)  dollar. 
C)  pound. 
D)  peso. 
E)  euro. 
A)  yen. 
B)  dollar. 
C)  pound. 
D)  peso. 
E)  euro.

Question 12

By the mid-1990s, a negative real GDP gap in Japan was as large as it was in the United States during which of the following downturns?

Accepted Answer

A)  1921 
B)  1933 
C)  1982 
D)  1991 
E)  2002 
A)  1921 
B)  1933 
C)  1982 
D)  1991 
E)  2002

Question 13

Which of the following conditions describes the state of economic affairs in Japan during 2003?

Accepted Answer

A)  The stock market had fallen by almost 80 percent since 1989. 
B)  The national debt was almost one and a half times the size of the GDP. 
C)  Unemployment was higher than any time in the previous five decades. 
D)  Land prices had fallen by almost 90 percent since 1989. 
E)  All are true except d. 
A)  The stock market had fallen by almost 80 percent since 1989. 
B)  The national debt was almost one and a half times the size of the GDP. 
C)  Unemployment was higher than any time in the previous five decades. 
D)  Land prices had fallen by almost 90 percent since 1989. 
E)  All are true except d.

All of the following statements are correct except which one?

By the mid 1990s, real GDP in Japan was percent below its Potential.

Which of the following events did not strain the European monetary system EMS) of the 1980s and 1990s and thus contribute to the formation of the Eurozone.

Countries with inconvertible currencies generally have no need to

Under the Bretton Woods Agreement, appreciation of a country's currency against the dollar necessitated

The United States, Germany, Great Britain, France, and Japan met in 1985 to discuss a currency problem. Which of the following accurately describes their agreement and its results?

Restoring economic growth in Japan requires progress in each of the areas listed below except

Each of the following countries has sophisticated, intergrated financial markets except

The Eurozone includes each of the following countries except

The indirect channels) through which higher exchange rates can cause the central banks using a Taylor rule to lower interest rates are

The world financial and monetary system consists of several large economies with sophisticated financial markets. The currencies of four major participants include all but the

By the mid-1990s, a negative real GDP gap in Japan was as large as it was in the United States during which of the following downturns?

Which of the following conditions describes the state of economic affairs in Japan during 2003?

Economic Growth, Fluctuation, and Policy

Measuring Economic Performance

Employment, Job Creation, and Job Destruction

Long-Run Economic Growth

Technology and Economic Growth

Growth and the World Economy

Short-Run Fluctuations

Financial Markets and Aggregate Demand

The Economic Fluctuations Model

Consumption Demand

Investment Demand

Foreign Trade and the Exchange Rate

Spending, Taxes, and the Budget Deficit

The Monetary System

The Microeconomic Foundations of Price Rigidity

The Macroeconomic Policy Model

The New Normative Macroeconomics

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Exam 18: Macroeconomic Policy in the World Economy

All of the following statements are correct except which one?

By the mid 1990s, real GDP in Japan was percent below its Potential.

Which of the following events did not strain the European monetary system EMS) of the 1980s and 1990s and thus contribute to the formation of the Eurozone.

Countries with inconvertible currencies generally have no need to

Under the Bretton Woods Agreement, appreciation of a country's currency against the dollar necessitated

The United States, Germany, Great Britain, France, and Japan met in 1985 to discuss a currency problem. Which of the following accurately describes their agreement and its results?

Restoring economic growth in Japan requires progress in each of the areas listed below except

Each of the following countries has sophisticated, intergrated financial markets except

The Eurozone includes each of the following countries except

The indirect channels) through which higher exchange rates can cause the central banks using a Taylor rule to lower interest rates are

The world financial and monetary system consists of several large economies with sophisticated financial markets. The currencies of four major participants include all but the

By the mid-1990s, a negative real GDP gap in Japan was as large as it was in the United States during which of the following downturns?

Which of the following conditions describes the state of economic affairs in Japan during 2003?

Economic Growth, Fluctuation, and Policy

Measuring Economic Performance

Employment, Job Creation, and Job Destruction

Long-Run Economic Growth

Technology and Economic Growth

Growth and the World Economy

Short-Run Fluctuations

Financial Markets and Aggregate Demand

The Economic Fluctuations Model

Consumption Demand

Investment Demand

Foreign Trade and the Exchange Rate

Spending, Taxes, and the Budget Deficit

The Monetary System

The Microeconomic Foundations of Price Rigidity

The Macroeconomic Policy Model

The New Normative Macroeconomics

Filters