Exam 19: A Macroeconomic Theory of the Open Economy: Part A

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If a country's exchange rate rises,what happens to its exports and what happens to its imports?

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Why do higher real interest rates lead to lower net capital outflow?

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Other things the same,which of the following would a rise in the real interest rate raise: desired investment spending,desired national saving,desired net capital outflow?

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In the market for foreign-currency exchange, the source of the supply of dollars is _________. The supply curve is _________ because _____________.

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How are the identities S = NCO + I and NCO = NX related to the foreign currency exchange market and the loanable funds market?

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A country recently had 500 billion euros of national saving and -200 billion euros of net capital outflow.What was its domestic investment? What was its quantity of loanable funds supplied?

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What happens to each of the following if the supply of loanable funds shifts right? A.the interest rate B.net capital outflow C.the exchange rate

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