Exam 15: International and Balance of Payments Issues in the Macro Economy

A lending of a country's savings that occurs when the country has a trade deficit and its citizens purchase real and financial assets from abroad is called a capital inflow.

Net exports are:

Borrowing from abroad represents:

The difference between nominal and real exchange rates is:

When the exchange rate is allowed to shift gradually over time, or within an exchange rate band which may also shift over time, this is considered a(n):

An expansionary monetary policy, all else equal, will:

Starting in 2008 and continuing into 2012, the Japanese yen kept appreciating against the U.S.dollar, hurting Japanese exports to the U.S.

The major factor contributing to the depreciation of the dollar in 2007-2008 was:

Under a gold standard, a continual balance of surplus in any country can be sustained only as long as the country's gold reserves hold out.

In 1997, the Thai government was unable to maintain its exchange rate given the amount of international reserves.

An international organization created at the Bretton Woods conference in 1944 that helps coordinate international financial flows and can arrange short-term loans between countries is called the:

In the foreign exchange market, the quantity supplied of dollars is 600 whereas the quantity demanded of dollars is 400 results in a:

An increased supply of U.S.dollars on the foreign exchange market, all else equal, will result in an appreciation of the U.S.dollar.

What will a U.S.corporation do if it believes that the dollar will continue to appreciate when it changes foreign earnings back into dollars?

A decreased demand for U.S.dollars on the foreign exchange market, all else equal, will result in a depreciation of the U.S.dollar.

What did the European Central Bank (ECB)do to bolster the value of the euro in September 2000?

The balance of payments accounts are divided into two sections: the current account and the financial account.

In the foreign exchange market, the quantity U.S.dollars demanded is a function of:

The international financial organization created at the Bretton Woods conference in 1944 that helps developing countries obtain low-interest loans is called the:

The current flows of goods, services, investment income, and unilateral transfers between a country and the rest of the world is called the: