Question 1

If imports increase as disposable income increases,economic growth will __________ net exports and contribute to a trade __________.

Accepted Answer

A)  increase; deficit 
B)  increase; surplus 
C)  decrease; deficit 
D)  decrease; surplus 
E)  not affect; balance 
A)  increase; deficit 
B)  increase; surplus 
C)  decrease; deficit 
D)  decrease; surplus 
E)  not affect; balance C

Question 2

A decrease in the value of the U.S.dollar relative to other currencies will increase U.S.exports.

Accepted Answer

A) True 
 B)False  True

Question 3

U.S.net exports will fall if

Accepted Answer

A)  U.S.income rises 
B)  U.S.income falls 
C)  U.S.imports decrease 
D)  the value of the U.S.dollar falls 
E)  U.S.exports increase and U.S.imports are autonomous 
A)  U.S.income rises 
B)  U.S.income falls 
C)  U.S.imports decrease 
D)  the value of the U.S.dollar falls 
E)  U.S.exports increase and U.S.imports are autonomous A

Question 4

As U.S.income falls,U.S.exports will fall.

Accepted Answer

A) True 
 B)False

Question 5

In 2007,the value of the dollar declined,which should have __________ exports,__________ imports,and shifted the net export function __________.

Accepted Answer

A)  increased,decreased,downward 
B)  increased,increased,upward 
C)  increased,decreased,upward 
D)  decreased,decreased,downward 
E)  decreased,increased,downward 
A)  increased,decreased,downward 
B)  increased,increased,upward 
C)  increased,decreased,upward 
D)  decreased,decreased,downward 
E)  decreased,increased,downward

Question 6

If the U.S.economy were to go through a severe recession by itself (i.e.,without it being contagious to the rest of the world),we would typically observe an increase in the U.S.trade deficit.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements regarding imports and exports is true?

Accepted Answer

A)  Both imports and exports vary directly with the level of domestic income. 
B)  Both imports and exports vary inversely with the level of domestic income. 
C)  Imports vary directly with the level of domestic income; exports are independent of the level of domestic income. 
D)  Exports vary directly with the level of domestic income; imports are independent of the level of domestic income. 
E)  Both imports and exports are independent of the level of domestic income. 
A)  Both imports and exports vary directly with the level of domestic income. 
B)  Both imports and exports vary inversely with the level of domestic income. 
C)  Imports vary directly with the level of domestic income; exports are independent of the level of domestic income. 
D)  Exports vary directly with the level of domestic income; imports are independent of the level of domestic income. 
E)  Both imports and exports are independent of the level of domestic income.

Question 8

Which of the following would shift the U.S.net export function downward?

Accepted Answer

A)  an increase in the value of the U.S.dollar relative to other currencies 
B)  a decrease in the value of the U.S.dollar relative to other currencies 
C)  a decrease in U.S.incomes relative to other countries 
D)  a decrease in U.S.price levels relative to foreign price levels 
E)  an increase in foreign incomes relative to U.S.incomes 
A)  an increase in the value of the U.S.dollar relative to other currencies 
B)  a decrease in the value of the U.S.dollar relative to other currencies 
C)  a decrease in U.S.incomes relative to other countries 
D)  a decrease in U.S.price levels relative to foreign price levels 
E)  an increase in foreign incomes relative to U.S.incomes

Question 9

A decrease in U.S.income would lead to a(n)

Accepted Answer

A)  increase in U.S.exports 
B)  decrease in U.S.imports 
C)  decrease in both U.S.imports and U.S.exports 
D)  increase in U.S.exports and a decrease in U.S.imports 
E)  decrease in U.S.exports and an increase in U.S.imports 
A)  increase in U.S.exports 
B)  decrease in U.S.imports 
C)  decrease in both U.S.imports and U.S.exports 
D)  increase in U.S.exports and a decrease in U.S.imports 
E)  decrease in U.S.exports and an increase in U.S.imports

Question 10

An increase in U.S.income would lead to

Accepted Answer

A)  an increase in U.S.exports and a decrease in U.S.imports 
B)  a decrease in U.S.exports and an increase in U.S.imports 
C)  an increase in both U.S.imports and U.S.exports 
D)  a decrease in both U.S.exports and U.S.imports 
E)  no change in U.S.exports and an increase in U.S.imports 
A)  an increase in U.S.exports and a decrease in U.S.imports 
B)  a decrease in U.S.exports and an increase in U.S.imports 
C)  an increase in both U.S.imports and U.S.exports 
D)  a decrease in both U.S.exports and U.S.imports 
E)  no change in U.S.exports and an increase in U.S.imports

Question 11

An increase in U.S.consumers' incomes will decrease U.S.exports.

Accepted Answer

A) True 
 B)False

Question 12

Subtracting the import function from the export function produces the net export function.

Accepted Answer

A) True 
 B)False

Question 13

As U.S.income rises,U.S.imports will rise.

Accepted Answer

A) True 
 B)False

Question 14

An increase in the value of the U.S.dollar relative to foreign currencies would lead to

Accepted Answer

A)  an increase in U.S.exports and a decrease in U.S.imports 
B)  a decrease in U.S.exports and an increase in U.S.imports 
C)  an increase in both U.S.imports and U.S.exports 
D)  a decrease in both U.S.exports and U.S.imports 
E)  no change in exports and an increase in U.S.imports 
A)  an increase in U.S.exports and a decrease in U.S.imports 
B)  a decrease in U.S.exports and an increase in U.S.imports 
C)  an increase in both U.S.imports and U.S.exports 
D)  a decrease in both U.S.exports and U.S.imports 
E)  no change in exports and an increase in U.S.imports

Question 15

U.S.economic growth does not contribute to a U.S.trade deficit.

Accepted Answer

A) True 
 B)False

Question 16

A decrease in the value of the U.S.dollar relative to other currencies will shift the net export function upward.

Accepted Answer

A) True 
 B)False

Question 17

If one British pound originally exchanges for one U.S.dollar and then is revalued to exchange for two U.S.dollars,what should happen to U.S.net exports?

Accepted Answer

A)  Since the pound costs more,net exports will increase. 
B)  Since the dollar costs more,net exports will increase. 
C)  Since the dollar costs less,net exports will decrease. 
D)  Since the dollar costs more,net exports will decrease. 
E)  Since the dollar costs less,net exports will increase. 
A)  Since the pound costs more,net exports will increase. 
B)  Since the dollar costs more,net exports will increase. 
C)  Since the dollar costs less,net exports will decrease. 
D)  Since the dollar costs more,net exports will decrease. 
E)  Since the dollar costs less,net exports will increase.

Question 18

An increase in the value of the U.S.dollar relative to other currencies will increase U.S.imports.

Accepted Answer

A) True 
 B)False

Question 19

If U.S.net exports are negative,

Accepted Answer

A)  U.S.consumers are spending less on foreign goods than foreign consumers are spending on U.S.goods 
B)  U.S.consumers are spending more on foreign goods than foreign consumers are spending on U.S.goods 
C)  the government should promote imports to balance international trade 
D)  U.S.consumers are spending more on foreign goods than they are spending on U.S.goods 
E)  U.S.disposable income is low 
A)  U.S.consumers are spending less on foreign goods than foreign consumers are spending on U.S.goods 
B)  U.S.consumers are spending more on foreign goods than foreign consumers are spending on U.S.goods 
C)  the government should promote imports to balance international trade 
D)  U.S.consumers are spending more on foreign goods than they are spending on U.S.goods 
E)  U.S.disposable income is low

Question 20

If imports are plotted on the vertical axis and disposable income on the horizontal axis,the import line

Accepted Answer

A)  slopes downward,but we can tell nothing about its steepness 
B)  slopes downward with a slope less than -1 
C)  is a horizontal line 
D)  slopes upward with a slope less than 1 
E)  slopes upward,but we can say nothing about its steepness 
A)  slopes downward,but we can tell nothing about its steepness 
B)  slopes downward with a slope less than -1 
C)  is a horizontal line 
D)  slopes upward with a slope less than 1 
E)  slopes upward,but we can say nothing about its steepness

Exam 23: Variable Net Exports

If imports increase as disposable income increases,economic growth will __________ net exports and contribute to a trade __________.

A decrease in the value of the U.S.dollar relative to other currencies will increase U.S.exports.

U.S.net exports will fall if

As U.S.income falls,U.S.exports will fall.

In 2007,the value of the dollar declined,which should have __________ exports,__________ imports,and shifted the net export function __________.

If the U.S.economy were to go through a severe recession by itself (i.e.,without it being contagious to the rest of the world),we would typically observe an increase in the U.S.trade deficit.

Which of the following statements regarding imports and exports is true?

Which of the following would shift the U.S.net export function downward?

A decrease in U.S.income would lead to a(n)

An increase in U.S.income would lead to

An increase in U.S.consumers' incomes will decrease U.S.exports.

Subtracting the import function from the export function produces the net export function.

As U.S.income rises,U.S.imports will rise.

An increase in the value of the U.S.dollar relative to foreign currencies would lead to

U.S.economic growth does not contribute to a U.S.trade deficit.

A decrease in the value of the U.S.dollar relative to other currencies will shift the net export function upward.

If one British pound originally exchanges for one U.S.dollar and then is revalued to exchange for two U.S.dollars,what should happen to U.S.net exports?

An increase in the value of the U.S.dollar relative to other currencies will increase U.S.imports.

If U.S.net exports are negative,

If imports are plotted on the vertical axis and disposable income on the horizontal axis,the import line

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Productivity and Growth

Tracking the US Economy

Unemployment and Inflation

Aggregate Expenditure

Aggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Developing and Transitional Economies

Understanding Graphs

National Income Accounts

Variable Net Exports Revisited

The Algebra of Income and Expenditure

The Algebra of Demand-Side Equilibrium

Filters

If imports increase as disposable income increases,economic growth will net exports and contribute to a trade .

In 2007,the value of the dollar declined,which should have exports, imports,and shifted the net export function __.