Exam 19: A Macroeconomic Theory of the Open Economy

If there is a surplus in the U.S. loanable funds market, then the interest rate

If the demand for net exports rises, which of the following happens in the open-economy macroeconomic model?

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

The explanation for the slope of

If a country raises its budget deficit, then its

When Mexico suffered from capital flight in 1994, the U.S. real interest rate

If there is a surplus of loanable funds, the quantity demanded is

In the open-economy macroeconomic model, the quantity of dollars demanded in the market for foreign-currency exchange

The open-economy macroeconomic model examines the determination of

When a country's government budget deficit decreases,

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

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

In 2002 it looked like the Argentinean government might default on its debt (which eventually it did). The open-economy macroeconomic model predicts that this should have

Capital flight reduces a country's real exchange rate.

In the open-economy macroeconomic model, the supply of dollars in the market for foreign-currency exchange comes from

In the open-economy macroeconomic model, the market for loanable funds identity can be written as

Which of the following is consistent with moving from a surplus to equilibrium in the market for foreign currency exchange?

Which of the following could explain a decrease in the U.S. real exchange rate?

If the supply of dollars in the market for foreign-currency exchange shifts left, then the exchange rate

Other things the same, if the U.S. real exchange rate depreciated, then U.S. net exports would