Exam 19: A Macroeconomic Theory of the Open Economy: Supply and Demand for Loanable Funds and for Foreign-Currency Exchange

In the open-economy macroeconomic model,if for some reason foreign citizens want to purchase more U.S.goods and services at each exchange rate,then

A U.S.grocery chain borrows money to buy a warehouse in Ohio and another in Italy.Borrowing for which warehouse(s)is included in the demand for loanable funds in the U.S.?

In an open economy,national saving equals

A country has I = $200 billion,S = $400 billion,and purchased $600 billion of foreign assets,how many of its assets did foreigners purchase?

If the real exchange rate for the dollar is below the equilibrium level,the quantity of dollars supplied in the market for foreign-currency exchange is

If there is a surplus of loanable funds,the quantity demanded is

At the equilibrium real interest rate in the open-economy macroeconomic model,the equilibrium quantity of loanable funds equals

Which of the following would make the equilibrium real interest rate increase and the equilibrium quantity of funds decrease?

An increase in real interest rates in the United States

Figure 32-1 -Refer to Figure 32-1.If the real interest rate is 6 percent,there will be pressure for

When the real exchange rate for the dollar depreciates,U.S.goods become

Which of the following would make both the equilibrium real interest rate and the equilibrium quantity of loanable funds decrease?

Figure 32-2 -Refer to Figure 32-2.What are the equilibrium values of the real exchange rate and net exports?

A country has private saving of $100 billion,public saving of -$30 billion,domestic investment of $50 billion,and net capital outflow of $20 billion.What is its supply of loanable funds?

A country has output of $600 billion,consumption of $350 billion,government expenditures of $90 billion and investment of $60 billion.What is its supply of loanable funds?

Other things the same,an increase in the U.S.real interest rate induces

In the open-economy macroeconomic model,the supply of loanable funds equals

If the supply of loanable funds shifts right,then the equilibrium

The slope of the supply of loanable funds is based on an increase in

Other things the same,a higher real interest rate raises the quantity of