Exam 32: A Macroeconomic Theory of the Open Economy

In the open-economy macroeconomic model,equilibrium in the market for foreign-currency exchange is determined by the equality between the supply of dollars which comes from

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

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

If a U.S.resident purchases a foreign bond,her transactions are included

Which of the following contains a list only of things that increase when the budget deficit of the U.S.increases?

In the open-economy macroeconomic model,a decrease in the domestic interest rate shifts

If a country raises its budget deficit,the net capital outflow

If for some reason Americans desired to increase their purchases of foreign assets,then other things the same

When the real exchange rate for the dollar depreciates,U.S.goods become

In an open economy,the supply of loanable funds comes from national saving.

Which of the following would make the equilibrium real interest rate decrease and the equilibrium quantity of loanable funds increase?

When a country imposes an import quota,its

Other things the same,a higher real interest rate raises the quantity of

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

If a country raises its budget deficit,then in the market for foreign-currency exchange

What effect do protectionist policies have on the trade deficit?

Which of the following is most likely to result if foreigners decide to withdraw the funds that they have loaned to the United States?

An increase in the U.S.government budget deficit shifts the

The quantity of U.S.bonds foreigners want to buy is taken into account

In the open-economy macroeconomic model,the demand for dollars shifts right if at any given exchange rate