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

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

Capital flight refers to

A firm produces construction equipment,some of which it exports.Which of the following effects of an increase in the government budget deficit would likely reduce the quantity of equipment it sells?

A limit on the quantity of a good produced abroad that can be purchased domestically is called a(n)

If there is capital flight from the United States,then the demand for loanable funds

Which of the following will decrease U.S.net capital outflow?

If China experienced capital flight,the supply of Chinese yuan in the market for foreign-currency exchange would shift

When a country experiences capital flight its interest rate

If the United States imposes an import quota on clothing,then U.S.exports

The imposition of an import quota shifts

When a country imposes an import quota,its exchange rate

Which of the following leads to an increase in net exports in the long run?

If a country's budget deficit decreases,then the exchange rate

If a country experiences capital flight,which of the following curves shift right?

When a country's government budget deficit increases,

Figure 32-5 Refer to this diagram of the open-economy macroeconomic model to answer the questions below. -Refer to Figure 32-5.In the market for foreign-currency exchange,the effects of an increase in the budget surplus can be illustrated as a move from j to

If the U.S.imposes an import quota on clothing,then the

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

Which of the following is most likely to result if foreigners decide to withdraw the funds that they have loaned to the United States?

If the Japanese government raised its budget deficit,then the yen would