Question 1

Which of the following is the correct way to show the effects of a new import quota?

Accepted Answer

A) shift the demand for loanable funds right, the supply of dollars for foreign exchange right, and the demand for dollars left 
B) shift the demand for loanable funds right, and the supply of dollars for foreign exchange left 
C) shift the demand for dollars for foreign currency exchange left 
D) shift the demand for dollars for foreign currency exchange right 
A) shift the demand for loanable funds right, the supply of dollars for foreign exchange right, and the demand for dollars left 
B) shift the demand for loanable funds right, and the supply of dollars for foreign exchange left 
C) shift the demand for dollars for foreign currency exchange left 
D) shift the demand for dollars for foreign currency exchange right

Question 2

In the open-economy macroeconomic model, which of the following would make Mexico's net capital outflow decrease?

Accepted Answer

A) a decrease in Canadian interest rates 
B) a decrease in Mexican interest rates 
C) an appreciation of the Mexican peso 
D) an increase in Mexico's net exports 
A) a decrease in Canadian interest rates 
B) a decrease in Mexican interest rates 
C) an appreciation of the Mexican peso 
D) an increase in Mexico's net exports

Question 3

Which of the following best predicts the effects of a fall in the Canadian real interest rate?

Accepted Answer

A) Owning Canadian assets becomes less attractive, and net capital outflow rises. 
B) Owning Canadian assets becomes less attractive, and net capital outflow falls. 
C) Owning Canadian assets becomes more attractive, and net capital outflow rises. 
D) Owning Canadian assets becomes more attractive, and net capital outflow falls. 
A) Owning Canadian assets becomes less attractive, and net capital outflow rises. 
B) Owning Canadian assets becomes less attractive, and net capital outflow falls. 
C) Owning Canadian assets becomes more attractive, and net capital outflow rises. 
D) Owning Canadian assets becomes more attractive, and net capital outflow falls.

Question 4

Which of the following does the open-economy macroeconomic model take as given?

Accepted Answer

A) GDP, but not the price level 
B) the price level, but not GDP 
C) both the price level and GDP 
D) the exchange rate 
A) GDP, but not the price level 
B) the price level, but not GDP 
C) both the price level and GDP 
D) the exchange rate

Which of the following is the correct way to show the effects of a new import quota?

In the open-economy macroeconomic model, which of the following would make Mexico's net capital outflow decrease?

Which of the following best predicts the effects of a fall in the Canadian real interest rate?

Which of the following does the open-economy macroeconomic model take as given?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 13: A Macroeconomic Theory of the Open Economy

Which of the following is the correct way to show the effects of a new import quota?

In the open-economy macroeconomic model, which of the following would make Mexico's net capital outflow decrease?

Which of the following best predicts the effects of a fall in the Canadian real interest rate?

Which of the following does the open-economy macroeconomic model take as given?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters