Exam 32: A Macroeconomic Theory of the Open Economy

Suppose the real exchange rate is such that the market for foreign-currency exchange has a surplus.This surplus will lead to

The real exchange rate measures the

Other things the same,if the Swedish real interest rate were to decrease,Swedish net capital outflow

Which of the following would both make a country's real exchange rate rise?

A limit on the quantity of a good produced abroad that can be purchased domestically is called a(n)

Refer to Figure 32-6.If the interest rate were initially at r₂ and an import quota were imposed,the interest rate would

Figure 32-1 -Refer to Figure 32-1.The loanable funds market is in equilibrium at

In the open-economy macroeconomic model,if the supply of loanable funds increases,net capital outflow

In the open-economy macroeconomic model,if investment demand increases,then

If a county becomes more likely to default on its bonds,what happens to that country's interest rate and exchange rate? Explain.

From 1980 to 1987,U.S.net capital outflows decreased.According to the open-economy macroeconomic model,which of the following could have caused this?

The open-economy macroeconomic model includes

An increase in the U.S.real interest rate induces

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

Other things the same,in the open-economy macroeconomic model,which of the following would make India's net capital outflow increase?

Suppose the U.S.imposes an import quota on steel.U.S.exports

In 2002,the United States imposed restrictions on the importation of steel into the United States.The open-economy macroeconomic model shows that such a policy would

When the U.S.real interest rate falls,owning U.S.assets becomes

Over the past two decades,the United States has

Figure 32-4 -Refer to Figure 32-5.In the market for foreign-currency exchange,the effects of an increase in the budget surplus is illustrated as a move from g to