Exam 32: A Macroeconomic Theory of the Open Economy

Figure 32-4 -Refer to Figure 32-5.The initial effect of an increase in the budget deficit in the loanable funds market is illustrated as a move from

Refer to Figure 32-6.Which of the following shifts show the effects of an import quota?

If U.S.citizens decide to purchase more foreign assets at each interest rate,the U.S.real interest rate

In the open-economy macroeconomic model,the market for loanable funds equates national saving with

A large and sudden movement of funds out of a country is called

In 1998 the Russian government defaulted on its bonds.According to the open-economy macroeconomic model,this should have

A country has national saving of $80 billion,government expenditures of $40 billion,domestic investment of $60 billion,and net capital outflow of $20 billion.What is its demand for loanable funds?

If net exports are positive,then

When a country experiences capital flight its currency

Many U.S.business leaders argue that the current state of U.S.net exports is the result of

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

In the open-economy macroeconomic model,a higher domestic interest rate reduces the quantity of loanable funds demanded

Other things the same,if the interest rate falls,then

Because a government budget deficit represents

Other things the same,when the real exchange rate of the dollar appreciates,U.S.goods become more attractive to U.S.residents,but less attractive to foreign residents.

When a country's government budget deficit increases,

In the open-economy macroeconomic model,the supply of loanable funds comes from

Which of the following is included in the demand for dollars in the market for foreign-currency exchange in the open-economy macroeconomic model?

If the U.S.put an import quota on vacuum cleaners,it would

In the open-economy macroeconomic model,the supply of dollars in the market for foreign-currency exchange is upward sloping.