Exam 19: A Macroeconomic Theory of the Open Economy: How Policies and Events Affect an Open Economy

When a country experiences capital flight,the interest rate

From 2001 to 2004,the U.S.government went from a budget surplus to a budget deficit.According to the open-economy macroeconomic model,this should have decreased

When a country experiences capital flight,which of the following rise?

An increase in the budget deficit makes domestic interest rates

If a country raises its budget deficit,then in the market for foreign-currency exchange

If people decide that some country is now a more risky place to keep their saving,then at the original interest rate in that country there is a

If the people thought that many banks in a certain country were at or near the point of bankruptcy,then that country's real exchange rate

If the U.S.imposed an import quota on furniture,U.S.net exports of furniture

In which case(s)does(do)a country's supply of loanable funds shift right?

When a country experiences capital flight,its net capital outflow,

If a country raises its budget deficit,then net capital outflow

Which of the following would cause the real exchange rate of the U.S.dollar to appreciate?

Which of the following is the most likely result from an increase in a country's government budget surplus?

A tax on imported goods is called a(n)

When Mexico suffered from capital flight in 1994,Mexico's net capital outflow

An increase in a country's budget deficit

A rise in the budget deficit

When fear of default on bonds issued by U.S.corporations decline,then

Trade policies

If a country repeals an investment tax credit that,subsidizes domestic investment,