Exam 32: A Macroeconomic Theory of the Open Economy

Many U.S.business leaders argue that the current state of U.S.net exports is the result of

Which of the following would not be a consequence of an increase in the U.S.government budget deficit?

Which of the following is most likely to increase the exports of a country?

Which of the following is included in the demand for dollars in the market for foreign-currency exchange in the open-economy macroeconomic model?

Figure 32-2 -Refer to Figure 32-2.National saving is represented by the

Suppose that Egypt has a government budget surplus,and then goes into deficit.This action would

Other things the same,an increase in the interest rate would tend to reduce

Other things the same,a higher real interest rate raises the quantity of

Suppose that the United States imposes an import quota on automobiles.In the open-economy macroeconomic model this quota shifts the

Because a government budget deficit represents

If Kenya experienced capital flight,the supply of Kenyan schillings in the market for foreign-currency exchange would shift

If government policy encouraged households to save more at each interest rate,then

In the open-economy macroeconomic model,equilibrium is determined by the equality between the supply of dollars which comes from

Which of the following is most likely to increase exports?

A limit on the quantity of a good produced abroad that can be purchased domestically is called a(n)

The open-economy macroeconomic model takes

A fall in the real interest rate

If a government increases its budget deficit,then interest rates

The price that balances supply and demand in the market for foreign-currency exchange in the open-economy macroeconomic model is the

Suppose that the real exchange rate is such that the market for foreign-currency exchange has a surplus