A) dominates world trade in one or more products. B) is physically larger than all small open economies. C) has a larger population than all small open economies. D) lends or borrows enough in the international capital market to influence the world real interest rate. A) dominates world trade in one or more products. B) is physically larger than all small open economies. C) has a larger population than all small open economies. D) lends or borrows enough in the international capital market to influence the world real interest rate.

A) the total amount of imports purchased by a country. B) the net amount of imports purchased by a country. C) total spending by domestic residents, businesses, and governments. D) GDP less desired consumption, desired investment, and government purchases. A) the total amount of imports purchased by a country. B) the net amount of imports purchased by a country. C) total spending by domestic residents, businesses, and governments. D) GDP less desired consumption, desired investment, and government purchases.

Exam 5: Saving and Investment in the Open Economy

A large open economy reduces its investment demand.This causes the world real interest rate to and the country's current account balance to .

(Multiple Choice)

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Question 101

If a freeze destroys much of the crop of an agricultural nation,then

(Multiple Choice)

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Question 102

A large open economy

(Multiple Choice)

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Question 103

The goods market equilibrium condition in an open economy shows that

(Multiple Choice)

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Question 104

If a U.S.company imports 10 Toyotas from Japan at $15,000 each,and the Japanese company buys airline tickets on a U.S.airline with the money,how does this affect the U.S.balance of payments accounts?

(Multiple Choice)

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Question 105

A large open economy has desired national saving of S^d = 1200 + 1000r^w,and desired national investment of I^d = 1000 - 500r^w.The foreign economy has desired national saving of = 1300 + 1000r^w,and desired national investment of = 1800 - 500r^w.The equilibrium world real interest rate equals

(Multiple Choice)

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Question 106

In a large open economy like the United States,an increased government budget deficit which reduces national saving

(Multiple Choice)

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Question 107

Consider a small open economy that is in equilibrium with a current account surplus. (a)Draw a diagram showing this situation. (b)Now suppose that future income increases.Show what happens in your diagram.What happens to the world real interest rate and the equilibrium quantities of saving,investment,and the current account balance? (c)Repeat parts (a)and (b)for the case of a large open economy,showing a situation in which the home country initially has a current account surplus.Draw a diagram and describe how the rise in future income in the home country affects all four variables (the world real interest rate and the equilibrium quantities of saving,investment,and the current account balance)in both countries.

(Essay)

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Question 108

In a small open economy,describe what happens when an increase in wealth causes national saving to decline.Explain the impact on the real interest rate,saving,investment,net exports,and absorption in equilibrium.

(Essay)

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Question 109

An economic benefit of capital outflows is that they

(Multiple Choice)

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Question 110

A small open economy has a current account balance of zero.A rise in its investment demand causes

(Multiple Choice)

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Question 111

Absorption refers to

(Multiple Choice)

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Question 112

Which of the following transactions would not be included in the current account of the home country?

(Multiple Choice)

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Question 113

The difference between the current account balance and net exports is

(Multiple Choice)

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Question 114

Suppose the development of the European Union leads to greater investment in Europe.You'd expect

(Multiple Choice)

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Question 115

A large open economy has desired national saving of S^d = 1200 + 1000r^w,and desired national investment of I^d = 1000 - 500r^w.The foreign economy has desired national saving of = 1300 + 1000r^w,and desired national investment of = 1800 - 500r^w.In equilibrium,the foreign country has net exports equal to

(Multiple Choice)

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Question 116

Suppose output is $1000 billion,government purchases are $200 billion,desired consumption is $700 billion,and desired investment is $150 billion.Net foreign lending would be equal to

(Multiple Choice)

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Question 117

If the United States donates footballs to Japan,how is the transaction recorded on the U.S.balance of payments accounts?

(Multiple Choice)

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Question 118

Showing 101 - 118 of 118

A large open economy reduces its investment demand.This causes the world real interest rate to and the country's current account balance to .

If a freeze destroys much of the crop of an agricultural nation,then

A large open economy

The goods market equilibrium condition in an open economy shows that

If a U.S.company imports 10 Toyotas from Japan at $15,000 each,and the Japanese company buys airline tickets on a U.S.airline with the money,how does this affect the U.S.balance of payments accounts?

A large open economy has desired national saving of S^d = 1200 + 1000r^w,and desired national investment of I^d = 1000 - 500r^w.The foreign economy has desired national saving of = 1300 + 1000r^w,and desired national investment of = 1800 - 500r^w.The equilibrium world real interest rate equals

In a large open economy like the United States,an increased government budget deficit which reduces national saving

In a small open economy,describe what happens when an increase in wealth causes national saving to decline.Explain the impact on the real interest rate,saving,investment,net exports,and absorption in equilibrium.

An economic benefit of capital outflows is that they

A small open economy has a current account balance of zero.A rise in its investment demand causes

Absorption refers to

Which of the following transactions would not be included in the current account of the home country?

The difference between the current account balance and net exports is

Suppose the development of the European Union leads to greater investment in Europe.You'd expect

Suppose output is $1000 billion,government purchases are $200 billion,desired consumption is $700 billion,and desired investment is $150 billion.Net foreign lending would be equal to

If the United States donates footballs to Japan,how is the transaction recorded on the U.S.balance of payments accounts?

Introduction to Macroeconomics

The Measurement and Structure of the National Economy

Productivity, output, and Employment

Consumption, saving, and Investment

Long-Run Economic Growth

The Asset Market, money, and Prices

Business Cycles

The Is-Lmad-As Model

Classical Business Cycle Analysis

Keynesianism: the Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates, business Cycles, and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

Filters

Exam 5: Saving and Investment in the Open Economy

A large open economy reduces its investment demand.This causes the world real interest rate to ________ and the country's current account balance to ________.

If a freeze destroys much of the crop of an agricultural nation,then

A large open economy

The goods market equilibrium condition in an open economy shows that

If a U.S.company imports 10 Toyotas from Japan at $15,000 each,and the Japanese company buys airline tickets on a U.S.airline with the money,how does this affect the U.S.balance of payments accounts?

A large open economy has desired national saving of Sd = 1200 + 1000rw,and desired national investment of Id = 1000 - 500rw.The foreign economy has desired national saving of = 1300 + 1000rw,and desired national investment of = 1800 - 500rw.The equilibrium world real interest rate equals

In a large open economy like the United States,an increased government budget deficit which reduces national saving

In a small open economy,describe what happens when an increase in wealth causes national saving to decline.Explain the impact on the real interest rate,saving,investment,net exports,and absorption in equilibrium.

An economic benefit of capital outflows is that they

A small open economy has a current account balance of zero.A rise in its investment demand causes

Absorption refers to

Which of the following transactions would not be included in the current account of the home country?

The difference between the current account balance and net exports is

Suppose the development of the European Union leads to greater investment in Europe.You'd expect

Suppose output is $1000 billion,government purchases are $200 billion,desired consumption is $700 billion,and desired investment is $150 billion.Net foreign lending would be equal to

If the United States donates footballs to Japan,how is the transaction recorded on the U.S.balance of payments accounts?

Introduction to Macroeconomics

The Measurement and Structure of the National Economy

Productivity, output, and Employment

Consumption, saving, and Investment

Long-Run Economic Growth

The Asset Market, money, and Prices

Business Cycles

The Is-Lmad-As Model

Classical Business Cycle Analysis

Keynesianism: the Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates, business Cycles, and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

Filters

A large open economy reduces its investment demand.This causes the world real interest rate to and the country's current account balance to .

A large open economy has desired national saving of S^d = 1200 + 1000r^w,and desired national investment of I^d = 1000 - 500r^w.The foreign economy has desired national saving of = 1300 + 1000r^w,and desired national investment of = 1800 - 500r^w.The equilibrium world real interest rate equals