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

When a government increases its budget deficit,then that country's

If the French government increases its expenditures and reduces taxes,then France's interest rate

In 2002 it looked like the Argentinean government might default on its debt (which eventually it did).The open-economy macroeconomic model predicts that this should have

Which of the following is most likely to increase U.S.exports?

If a country's budget deficit rises,then its exchange rate

An increase in the budget surplus

If after a country experiences capital flight,people become more confident about the safety of its assets,then in that country

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 surplus can be illustrated as a move to

In 2002,the United States placed higher tariffs on imports of steel.According to the open-economy macroeconomic model this policy should have

Which of the following would do the most to reduce a trade deficit?

When a country's government budget deficit decreases,

In equilibrium which of the following happens if the U.S.imposes tariffs on power tools?

When a government reduces its budget deficit,then that country's

If the budget deficit increases,then

Which of the following decreases if the U.S.removes an import quota on computer components?

If the government of a country with a zero trade balance started with a budget deficit and moved to a budget surplus,domestic investment would

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

In the United States in the early 1980s,there was a government budget

When a country suffers from capital flight,the exchange rate

When Mexico suffered from capital flight in 1994,U.S.demand for loanable funds