Exam 13: Automatic Adjustments With Flexible and Fixed Exchange Rates

The _______________ states that the foreign exchange market is stable when in absolute sense the sum of the price elasticities of demands for imports and exports is greater than one.

(Multiple Choice)

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Question 21

The US supply curve may be vertical or negatively sloped if the foreign demand for US exports in terms of euros is __________.

(Multiple Choice)

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Question 22

The proportion of an exchange rate change that is reflected in export and import price changes is called:

(Multiple Choice)

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Question 23

The ________________ served as the automatic adjustment mechanism under the gold standard exchange system.

(Multiple Choice)

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Question 24

What signs do the price elasticity of the US demand for imports and the price elasticity of the foreign demand for US exports in euros have?

(Multiple Choice)

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Question 25

In a stable foreign exchange market,a nation can correct a deficit in its balance of payments by allowing its currency to __________.

(Multiple Choice)

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Question 26

The foreign exchange market is stable if:

(Multiple Choice)

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Question 27

The mint parity plus the cost of shipping an amount of gold equal to one unit of the foreign currency between the two nations is:

(Multiple Choice)

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Question 28

In the following diagram D_€ is the US demand curve for Euro and S_€ is the US supply curve for Euro.If the exchange rate of Euro is US$1.5/€ then which of the following is true.

(Multiple Choice)

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Question 29

The price elasticity of the US demand for imports in euros is represented by the symbol η_M.

(True/False)

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Question 30

According to the J-curve effect,when a nation's currency appreciates,the nation's trade balance:

(Multiple Choice)

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Question 31

A country with budget deficit which is also at full employment can improve its deficit situation by allowing its currency to depreciate,only if,

(Multiple Choice)

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Question 32

The price elasticity of the US demand for imports in euros is given by:

(Multiple Choice)

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Question 33

The price-specie-flow adjustment mechanism operates by the deficit nation losing gold and experiencing a reduction in its money supply.

(True/False)

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Question 34

The marginal propensity to save is the amount of additional savings associated with each one-dollar increase in income multiplied by the increase in income.

(True/False)

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Question 35

If η_M= -.85 and η_X = -.62 ,then

(Multiple Choice)

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Question 36

The equilibrium level of income in an open economy is where:

(Multiple Choice)

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Question 37

For the US,the currency pass-through is about _______ percent

(Multiple Choice)

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Question 38

The US supply curve of euros may be vertical or negatively sloped if the foreign demand for US exports in terms of euros is sufficiently inelastic.

(True/False)

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Question 39

How does the adjustment mechanism operate under a gold standard?

(Essay)

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Question 40

Showing 21 - 40 of 55

The _______________ states that the foreign exchange market is stable when in absolute sense the sum of the price elasticities of demands for imports and exports is greater than one.

The US supply curve may be vertical or negatively sloped if the foreign demand for US exports in terms of euros is __________.

The proportion of an exchange rate change that is reflected in export and import price changes is called:

The ________________ served as the automatic adjustment mechanism under the gold standard exchange system.

What signs do the price elasticity of the US demand for imports and the price elasticity of the foreign demand for US exports in euros have?

In a stable foreign exchange market,a nation can correct a deficit in its balance of payments by allowing its currency to __________.

The foreign exchange market is stable if:

The mint parity plus the cost of shipping an amount of gold equal to one unit of the foreign currency between the two nations is:

In the following diagram D_€ is the US demand curve for Euro and S_€ is the US supply curve for Euro.If the exchange rate of Euro is US$1.5/€ then which of the following is true.

The price elasticity of the US demand for imports in euros is represented by the symbol η_M.

According to the J-curve effect,when a nation's currency appreciates,the nation's trade balance:

A country with budget deficit which is also at full employment can improve its deficit situation by allowing its currency to depreciate,only if,

The price elasticity of the US demand for imports in euros is given by:

The price-specie-flow adjustment mechanism operates by the deficit nation losing gold and experiencing a reduction in its money supply.

The marginal propensity to save is the amount of additional savings associated with each one-dollar increase in income multiplied by the increase in income.

If η_M= -.85 and η_X = -.62 ,then

The equilibrium level of income in an open economy is where:

For the US,the currency pass-through is about _______ percent

The US supply curve of euros may be vertical or negatively sloped if the foreign demand for US exports in terms of euros is sufficiently inelastic.

How does the adjustment mechanism operate under a gold standard?

Introduction to the Global Economy

Comparative Advantage

The Standard Trade Model

The Heckscher-Ohlin and Other Trade Theories

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the Political Economy of Protectionism

Economic Integration

Growth and Development With International Trade

International Resource Movements and Multinational Corporations

Balance of Payments

The Foreign Exchange Market and Exchange Rates

Exchange Rate Determination

Adjustment Policies

Flexible Versus Fixed Exchange Rates,european Monetary Systems,and Macroeconomic Policy Coordination

The International Monetary System: Past, present, and Future

Filters

Exam 13: Automatic Adjustments With Flexible and Fixed Exchange Rates

The _______________ states that the foreign exchange market is stable when in absolute sense the sum of the price elasticities of demands for imports and exports is greater than one.

The US supply curve may be vertical or negatively sloped if the foreign demand for US exports in terms of euros is __________.

The proportion of an exchange rate change that is reflected in export and import price changes is called:

The ________________ served as the automatic adjustment mechanism under the gold standard exchange system.

What signs do the price elasticity of the US demand for imports and the price elasticity of the foreign demand for US exports in euros have?

In a stable foreign exchange market,a nation can correct a deficit in its balance of payments by allowing its currency to __________.

The foreign exchange market is stable if:

The mint parity plus the cost of shipping an amount of gold equal to one unit of the foreign currency between the two nations is:

In the following diagram D€ is the US demand curve for Euro and S€ is the US supply curve for Euro.If the exchange rate of Euro is US$1.5/€ then which of the following is true.

The price elasticity of the US demand for imports in euros is represented by the symbol ηM.

According to the J-curve effect,when a nation's currency appreciates,the nation's trade balance:

A country with budget deficit which is also at full employment can improve its deficit situation by allowing its currency to depreciate,only if,

The price elasticity of the US demand for imports in euros is given by:

The price-specie-flow adjustment mechanism operates by the deficit nation losing gold and experiencing a reduction in its money supply.

The marginal propensity to save is the amount of additional savings associated with each one-dollar increase in income multiplied by the increase in income.

If ηM = -.85 and ηX = -.62 ,then

The equilibrium level of income in an open economy is where:

For the US,the currency pass-through is about _______ percent

The US supply curve of euros may be vertical or negatively sloped if the foreign demand for US exports in terms of euros is sufficiently inelastic.

How does the adjustment mechanism operate under a gold standard?

Introduction to the Global Economy

Comparative Advantage

The Standard Trade Model

The Heckscher-Ohlin and Other Trade Theories

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the Political Economy of Protectionism

Economic Integration

Growth and Development With International Trade

International Resource Movements and Multinational Corporations

Balance of Payments

The Foreign Exchange Market and Exchange Rates

Exchange Rate Determination

Adjustment Policies

Flexible Versus Fixed Exchange Rates,european Monetary Systems,and Macroeconomic Policy Coordination

The International Monetary System: Past, present, and Future

Filters

In the following diagram D_€ is the US demand curve for Euro and S_€ is the US supply curve for Euro.If the exchange rate of Euro is US$1.5/€ then which of the following is true.

The price elasticity of the US demand for imports in euros is represented by the symbol η_M.

If η_M= -.85 and η_X = -.62 ,then