Question 1

Of the G-7 industrialized economies,the following nation has the lowest income elasticity of imports

Accepted Answer

A)  The U.S. 
B)  German 
C)  Canada 
D)  Japan 
A)  The U.S. 
B)  German 
C)  Canada 
D)  Japan

Question 2

The foreign trade multiplier of nation 1 is largest:

Accepted Answer

A)  when there are no foreign repercussions 
B)  with foreign repercussions for an autonomous increase in nation 1's X that replace domestic production in nation 2 
C)  with foreign repercussions for an autonomous increase in I in nation 1 
D)  with foreign repercussions for an autonomous increase in I in nation 2 
A)  when there are no foreign repercussions 
B)  with foreign repercussions for an autonomous increase in nation 1's X that replace domestic production in nation 2 
C)  with foreign repercussions for an autonomous increase in I in nation 1 
D)  with foreign repercussions for an autonomous increase in I in nation 2

Question 3

In what way does the automatic income adjustment mechanism differ from the traditional or classical adjustment mechanism?

Accepted Answer

The automatic income adjustment mechanis

Question 4

If MPC=0.8 and MPM=0.05,the foreign trade multiplier is:

Accepted Answer

A)  5 
B)  4 
C)  3 
D)  2 
A)  5 
B)  4 
C)  3 
D)  2

Question 5

The improvement in a nation's balance of trade and payments resulting from a depreciation of its currency is:

Accepted Answer

A)  reinforced by the induced fall in imports 
B)  partly neutralized by the induced rise in imports 
C)  partly neutralized by the induced fall in imports 
D)  any of the above. 
A)  reinforced by the induced fall in imports 
B)  partly neutralized by the induced rise in imports 
C)  partly neutralized by the induced fall in imports 
D)  any of the above.

Question 6

When S exceeds I,an open economy has a trade:

Accepted Answer

A)  surplus 
B)  deficit 
C)  equilibrium 
D)  any of the above 
A)  surplus 
B)  deficit 
C)  equilibrium 
D)  any of the above

Question 7

.If the MPC=0.8 and the MPM=0.05,a $100 million increase in exports will lead to:

Accepted Answer

A)  a $400 million increase in equilibrium GDP. 
B)  a $400 million decrease in equilibrium GDP.. 
C)  a $500 million increase in equilibrium GDP., 
D)  a $500 million increase in equilibrium GDP 
A)  a $400 million increase in equilibrium GDP. 
B)  a $400 million decrease in equilibrium GDP.. 
C)  a $500 million increase in equilibrium GDP., 
D)  a $500 million increase in equilibrium GDP

Question 8

One disadvantage facing a freely flexible exchange rate system is that is can cause

Accepted Answer

A)  overshooting 
B)  competitive devaluations 
C)  hedging 
D)  loss of monetary policy control 
A)  overshooting 
B)  competitive devaluations 
C)  hedging 
D)  loss of monetary policy control

Question 9

The marginal propensity to consume measures:

Accepted Answer

A)  the ratio of imports to income 
B)  the ratio of income to imports 
C)  the change in imports over the change in income 
D)  the change in income over the change in imports 
A)  the ratio of imports to income 
B)  the ratio of income to imports 
C)  the change in imports over the change in income 
D)  the change in income over the change in imports

Question 10

The income elasticity of imports is given by:

Accepted Answer

A)  the percentage change in income over the percentage change in imports 
B)  the change in imports over the change in income 
C)  the marginal propensity to import over the average propensity to import 
D)  the average propensity to import over the marginal propensity to import 
A)  the percentage change in income over the percentage change in imports 
B)  the change in imports over the change in income 
C)  the marginal propensity to import over the average propensity to import 
D)  the average propensity to import over the marginal propensity to import

Of the G-7 industrialized economies,the following nation has the lowest income elasticity of imports

The foreign trade multiplier of nation 1 is largest:

In what way does the automatic income adjustment mechanism differ from the traditional or classical adjustment mechanism?

If MPC=0.8 and MPM=0.05,the foreign trade multiplier is:

The improvement in a nation's balance of trade and payments resulting from a depreciation of its currency is:

When S exceeds I,an open economy has a trade:

.If the MPC=0.8 and the MPM=0.05,a $100 million increase in exports will lead to:

One disadvantage facing a freely flexible exchange rate system is that is can cause

The marginal propensity to consume measures:

The income elasticity of imports is given by:

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

Open Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, present, and Future Answers to Selected Problems on Web

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Exam 17: The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Of the G-7 industrialized economies,the following nation has the lowest income elasticity of imports

The foreign trade multiplier of nation 1 is largest:

In what way does the automatic income adjustment mechanism differ from the traditional or classical adjustment mechanism?

If MPC=0.8 and MPM=0.05,the foreign trade multiplier is:

The improvement in a nation's balance of trade and payments resulting from a depreciation of its currency is:

When S exceeds I,an open economy has a trade:

.If the MPC=0.8 and the MPM=0.05,a $100 million increase in exports will lead to:

One disadvantage facing a freely flexible exchange rate system is that is can cause

The marginal propensity to consume measures:

The income elasticity of imports is given by:

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

Open Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, present, and Future Answers to Selected Problems on Web

Filters