Question 1

If national saving decreases,

Accepted Answer

A)  the sum of domestic investment and net exports must increase. 
B)  the sum of domestic investment and foreign investment must increase. 
C)  the sum of domestic investment and foreign investment must decrease. 
D)  foreign investment must increase to cover the loss. 
A)  the sum of domestic investment and net exports must increase. 
B)  the sum of domestic investment and foreign investment must increase. 
C)  the sum of domestic investment and foreign investment must decrease. 
D)  foreign investment must increase to cover the loss.

Question 2

If foreign holdings of U.S.dollars increase,holding all else constant,

Accepted Answer

A)  the balance on the U.S. financial account will increase. 
B)  the balance on the U.S. current account will increase. 
C)  the balance on the U.S. capital account will increase. 
D)  the U.S. balance of trade will increase. 
A)  the balance on the U.S. financial account will increase. 
B)  the balance on the U.S. current account will increase. 
C)  the balance on the U.S. capital account will increase. 
D)  the U.S. balance of trade will increase.

Question 3

If American demand for purchases of Mexican goods has increased,how would you expect the equilibrium exchange rate in the market for dollars to respond? Support your answer graphically.

Accepted Answer

If Americans are demanding more Mexican

Question 4

Public saving equals taxes minus government spending minus transfer payments.

Accepted Answer

A) True 
 B)False

Question 5

An increase in the demand for American-made goods will

Accepted Answer

A)  increase the supply of dollars on the foreign exchange market. 
B)  decrease the supply of dollars on the foreign exchange market. 
C)  increase the demand for dollars on the foreign exchange market. 
D)  decrease the demand for dollars on the foreign exchange market. 
A)  increase the supply of dollars on the foreign exchange market. 
B)  decrease the supply of dollars on the foreign exchange market. 
C)  increase the demand for dollars on the foreign exchange market. 
D)  decrease the demand for dollars on the foreign exchange market.

If national saving decreases,

If foreign holdings of U.S.dollars increase,holding all else constant,

If American demand for purchases of Mexican goods has increased,how would you expect the equilibrium exchange rate in the market for dollars to respond? Support your answer graphically.

Public saving equals taxes minus government spending minus transfer payments.

An increase in the demand for American-made goods will

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

The International Financial System

Filters

Exam 18: Macroeconomics in an Open Economy

If national saving decreases,

If foreign holdings of U.S.dollars increase,holding all else constant,

If American demand for purchases of Mexican goods has increased,how would you expect the equilibrium exchange rate in the market for dollars to respond? Support your answer graphically.

Public saving equals taxes minus government spending minus transfer payments.

An increase in the demand for American-made goods will

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

The International Financial System

Filters