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

Which of the following would both make a country's real exchange rate rise?

If a country places tariffs on imported goods,then

If the risk of buying U.S.assets rises because it is discovered that lending institutions had not carefully evaluated borrowers prior to lending them funds,then

If a country imposes a tariff on some good,then which of the following curves shifts right?

If the budget deficit increases,then

During the financial crisis it was proposed that firms be provided with a tax credit for investment projects.Such a tax credit would

In 2002,the United States imposed restrictions on the importation of steel into the United States.The open-economy macroeconomic model shows that such a policy would

If the U.S.government went from a budget deficit to a budget surplus then

If a government of a country with a zero trade balance increases its budget deficit,then the real exchange rate

If the U.S.government imposed quotas on imports of clothing,then U.S.

In 2009 Greece's budget deficit rose and people became worried about the ability of the Greek government to continue to make payments on its debt.Which of these events raise a country's interest rates?

If the government of Venezuela made policy changes that increased national saving,the real exchange rate of the peso would

Which of the following is correct?

A U.S.-imposed quota on automobiles would shift

Which of the following is the correct way to show the effects of a newly imposed import quota?

An increase in the budget deficit causes net capital outflow to

Which of the following will not change the U.S.real interest rate?

Which of the following happens in the market for loanable funds when there is capital flight?

If the U.S.were to impose import quotas

If a country went from a government budget deficit to a surplus,national saving would