Question 1

If there is a decrease in world taxes ________.

Accepted Answer

A) domestic investment would fall 
B) net exports would increase 
C) domestic interest rates would go up 
D) all of the above 
E) none of the above 
A) domestic investment would fall 
B) net exports would increase 
C) domestic interest rates would go up 
D) all of the above 
E) none of the above

Question 2

In an economy open to international trade ________.

Accepted Answer

A) saving equals investment in equilibrium 
B) saving is the difference between net exports and investment 
C) saving equals investment as long as the economy has no exports 
D) saving equals investment as long as NX=0 
E) none of the above 
A) saving equals investment in equilibrium 
B) saving is the difference between net exports and investment 
C) saving equals investment as long as the economy has no exports 
D) saving equals investment as long as NX=0 
E) none of the above

Question 3

Saving-Investment Diagram  
-Based on the Saving-Investment Diagram,if the world real interest rate is indicated by C,then ________.

Accepted Answer

A) the difference between values H and D measures the net capital outflow 
B) the difference between values H and D measures the trade deficit 
C) the domestic real interest rate is indicated by B 
D) the difference between values H and F measures the trade deficit 
E) none of the above 
A) the difference between values H and D measures the net capital outflow 
B) the difference between values H and D measures the trade deficit 
C) the domestic real interest rate is indicated by B 
D) the difference between values H and F measures the trade deficit 
E) none of the above

Question 4

In an economy open to international trade ________.

Accepted Answer

A) saving is the difference between net exports and consumption 
B) saving equals investment as long as the domestic real interest rate is equal to the world real interest rate 
C) the domestic real interest rate should equal the world real interest rate as long as the economy is relatively small 
D) all of the above 
E) none of the above 
A) saving is the difference between net exports and consumption 
B) saving equals investment as long as the domestic real interest rate is equal to the world real interest rate 
C) the domestic real interest rate should equal the world real interest rate as long as the economy is relatively small 
D) all of the above 
E) none of the above

Question 5

Which of the following is a correct statement?

Accepted Answer

A) Wealth can increase even if there is no saving. 
B) An increase in net foreign assets always increases wealth. 
C) Low U.S.national saving is the principal cause of the trade deficits the U.S.has run since the 1980s. 
D) The U.S will be a net debtor nation for the foreseeable future. 
E) all of the above 
A) Wealth can increase even if there is no saving. 
B) An increase in net foreign assets always increases wealth. 
C) Low U.S.national saving is the principal cause of the trade deficits the U.S.has run since the 1980s. 
D) The U.S will be a net debtor nation for the foreseeable future. 
E) all of the above

If there is a decrease in world taxes ________.

In an economy open to international trade ________.

Saving-Investment Diagram -Based on the Saving-Investment Diagram,if the world real interest rate is indicated by C,then ________.

In an economy open to international trade ________.

Which of the following is a correct statement?

The Policy and Practice of Macroeconomics

Measuring Macroeconomic Data

Aggregate Production and Productivity

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

Aggregate Supply and the Phillips Curve

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

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Exam 4: Saving and Investment in Closed and Open Economies

If there is a decrease in world taxes ________.

In an economy open to international trade ________.

Saving-Investment Diagram -Based on the Saving-Investment Diagram,if the world real interest rate is indicated by C,then ________.

In an economy open to international trade ________.

Which of the following is a correct statement?

The Policy and Practice of Macroeconomics

Measuring Macroeconomic Data

Aggregate Production and Productivity

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

Aggregate Supply and the Phillips Curve

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

Filters