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

From 1980 to 1987,U.S.net capital outflows decreased.According to the open-economy macroeconomic model,which of the following could have caused this?

When Mexico suffered from capital flight in 1994,Mexico's real interest rate

A large and sudden movement of funds out of a country is called

Figure 32-5 Refer to this diagram of the open-economy macroeconomic model to answer the questions below. -Refer to Figure 32-4.Suppose that the government goes from a budget surplus to a budget deficit.The effects of the change could be illustrated by

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

In 1995 House Speaker Newt Gingrich threatened to send the United States into default on its debt.During the day of this announcement,U.S.interest rates rose and the real exchange rate of the U.S.dollar depreciated.Which of these changes is consistent with the results of the open-economy macroeconomic model?

When a country imposes an import quota,its

When a country imposes an import quota,its

Figure 32-5 Refer to this diagram of the open-economy macroeconomic model to answer the questions below. -Refer to Figure 32-5.Starting from 3% and .75,an increase in the government budget deficit can be illustrated as a move to

If the Canadian government raises it budget deficit,then Canada's net capital outflows will

When a country experiences capital flight its

If the government of a country with a zero trade balances increases its budget deficit,then interest rates

If government policy encouraged households to save more at each interest rate,then

If a government increases its budget deficit,then domestic interest rates

Which of the following would not be a consequence of an increase in the U.S.government budget deficit?

Figure 32-7 Refer to this diagram of the open-economy macroeconomic model of the Mexican economy to answer the questions below. -Refer to Figure 32-7.Suppose the Mexican economy starts at r2 and e2.Which of the following new equilibrium is consistent with capital flight?

If a government has a budget surplus,then public saving

An increase in a country's budget surplus shifts its

If the U.S.raised its tariff on tires,then at the original exchange rate there would be a

If a country raises its budget deficit,then its