Exam 20: Exchange Rates and the Macroeconomy

Booms and recessions are transmitted to other countries.

An appreciation of the Japanese yen relative to the U.S.dollar will

One of the principal factors behind the U.S.trade deficits of the 1990s has been

If Asian economies suffer a serious economic slump,U.S.net exports will

A currency depreciation will put upward pressure on the price level.

As the international value of the dollar rises,AS shifts outward and AD shifts inward.

The worst remedy for curing the U.S.trade deficit is to

Explain how exchange rate changes affect aggregate demand.

A sizable appreciation of the U.S.dollar in the mid-1980s

If Japan experiences a period of deflation and the United States does not,what will happen in the United States?

From 1992,America's trade performance was marked by a(n)

Did the large U.S.budget deficits in the 1980s "crowd out" investment as some economists had predicted?

A large tax cut in the United States should lead to an increase in the trade deficit.

If a country tries to stimulate the economy with fiscal policy,the effects will be exchange rate

The main international repercussion of either a fiscal expansion or monetary contraction is to

A currency depreciation

Assume that Country X and Country Y are trading partners and the exchange rates are fixed.If prices in Country Y rise,all of the following are expected to happen except

If the dollar rises in value compared to other currencies,what will happen in the United States?

To eliminate the trade deficits in the late 1990s would have required,in addition to the reduction of the federal budget deficit,an increase in

One of the results of the strong economic growth in the United States relative to the rest of the world is a