Exam 18: Macroeconomics in an Open Economy

How will contractionary monetary policy in Japan affect the demand and supply of the yen in the foreign exchange market?

When Americans decrease their demand for Japanese goods

The current account deficits incurred by the United States in the 1990s and early 2000s were caused,in the opinion of many economists,by

When the market value of the dollar falls relative to other currencies around the world,we say that

Figure 18-1 -Refer to Figure 18-1.The appreciation of the euro is represented as a movement from

What happens to national saving when the government runs a budget surplus? What happens to national saving when the government runs a budget deficit?

The balance of trade is defined as

When Americans increase their demand for Japanese goods

The balance of payments includes which three accounts?

Ceteris paribus,an increase in the government's budget deficit will increase the current account deficit.

If national saving decreases

Use the saving and investment equation to explain why the United States experienced large current account deficits in the late 1990s.

What two measures of macroeconomic activity are often referred to as the "twin deficits"?

If there is currently a surplus of dollars,which of the following would you expect to see in the foreign exchange market?

Since 1999,the capital account has recorded

Which of the following is an example of foreign direct investment in China?

How does an increase in the budget deficit affect the demand for dollars and the supply of dollars on the foreign exchange market?

Based on the following information,calculate public saving,net foreign investment,and national income. Private saving = $83 billion Exports = $125 billion Imports = $130 billion Consumption = $200 billion Private investment = $56 billion Government purchases = $38 billion

In 2016,global revenue for Amazon was ________ when measured in local currencies than it was when measured in dollars.This occurred because the value of the U.S.dollar ________ relative to most other currencies.

Suppose the Fed purchases Treasury securities.Interest rates in the United States will ________ and the U.S.dollar will ________ against foreign currencies.