Exam 19: A Macroeconomic Theory of the Open Economy

If the real exchange rate for the dollar is above the equilibrium level, the quantity of dollars supplied in the market for foreign-currency exchange is

As the interest rate rises, it is possible that net capital outflow could move from a positive to a negative value.

When a country imposes a trade restriction, the real exchange rate of that country's currency appreciates.

An increase in the budget deficit causes domestic interest rates

Capital flight shifts the NCO curve to the left.

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

If the government of a country with a zero trade balances increases its budget deficit, then interest rates

In the long run import quotas do not affect the size of net exports.

Net capital outflow represents the quantity of dollars supplied in the foreign-currency exchange market.

Which of the following decreases if the U.S. imposes an import quota on computer components?

If the world thought that many banks in a certain country were at or near the point of bankruptcy, then that country's real exchange rate

An increase in real interest rates in the United States changes the quantity of loanable funds demanded because

In equilibrium a country has a net capital outflow of $200 billion and domestic investment of $150 billion. What is the quantity of loanable funds demanded?

In the open-economy macroeconomic model, if net capital outflow increases then

Which of the following will not change the U.S. real interest rate?

Figure 19-1 -Refer to Figure 19-1. In the Figure shown, if the real interest rate is 6 percent, there will be pressure for

When Mexico suffered from capital flight in 1994, Mexico's net exports

If the U.S. government imposes a quota on toy imports, then

Suppose that the U.S. imposes an import quota on lumber. The quota makes the real exchange rate of the U.S. dollar

When Mexico suffered from capital flight in 1994, U.S. demand for loanable funds