Exam 13: Open-Economy Macroeconomics: Basic Concepts

If a country had a trade deficit of $20 billion and then its exports rose by $7 billion and its imports fell by $10 billion, its net exports would now be

A U.S. firm called EcoWind produces windmills for households to generate electricity. It uses 25,000 recently obtained pesos to buy copper from a mining company in Argentina. As a result of this exchange, by how much, if at all, and in which direction did: A. U.S. net exports change? B. U.S. net capital outflow change?

If a country has a trade surplus

If Canada's national saving exceeds its domestic investment, then Canada has

For an economy as a whole, net exports must equal minus one times net capital outflow.

Last year a country had exports of $50 billion, imports of $60 billion, and domestic investment of $40 billion. What was its saving last year?

A dozen eggs cost $2 in the U.S. and 12 pesos in Argentina. If the real exchange rate is 5/6, what is the nominal exchange rate? Show your work.

Prices in both the U.S. and China rise, but prices in China increase by a larger percentage. According to purchasing- power parity, the U.S. dollar

If sales of Saudi Arabian oil to the rest of the world increase and Saudis use the proceeds to buy foreign goods, which of the following increases?

From 1980-1987, U.S. net capital outflow as a percent of GDP became a

Net exports of a country are the value of

Last year residents of country A purchased $400 billion of foreign assets and $200 of foreign goods. Foreigners purchased $300 billion dollars of country A's assets. What was the value of country A's exports?

If a country has net exports of $8 billion and sold $40 billion of goods and services abroad, then it has

Other things the same, the real exchange rate between American and French goods would be lower if

Which of the following is an example of U.S. foreign direct investment and by itself increases U.S. net capital outflow?

A U.S. fast food restaurant chain sells dollars for Argentinean pesos and then uses the pesos to buy Argentinean beef. Which of the following do these transactions increase?

If a country has saving of $2 trillion and investment of $1.5 trillion, then it has

U.S- based Dell sells computers to an Irish company that pays with previously obtained U.S. currency. This exchange

If the real exchange rate is less than 1, then the

If a country's imports exceed its exports it has a trade surplus.