Exam 13: Open-Economy Macroeconomics: Basic Concepts

You hold currency from a foreign country. If that country has a higher rate of inflation than the United States, then over time the foreign currency will buy

During the tough economic times from 2008-2012,

Peru has exports of $31.5 million and imports of $30 million. Peru

If the exchange rate changes from 148 Kazakhstan tenge per dollar to 155 Kazakhstan tenge per dollar, the dollar has

If a country had a trade surplus of $100 billion and then its exports rose by $40 billion and its imports rose by $30 billion, its net exports would now be

If the real exchange rate between the U.S. and Argentina is 1, then

In which of the following situations must national saving rise?

If U.S. exports are $300 billion and U.S. imports total $350 billion, which of the following is correct?

By itself, when a Japanese bank purchases a bond issued by a U.S. corporation, U.S. net capital outflow rises.

If the real exchange rate is 5/4 pounds of Chilean beef per pound of U.S. beef, a pound of U.S. beef costs $2 and the nominal exchange rate is 500 Chilean pesos per dollar, then Chilean beef costs

If the exchange rate is 80 yen per dollar, then a hotel room in Tokyo that costs 25,000 yen costs $200.

The large trade deficits in the U.S. during the 1990's were primarily associated with a rise in domestic investment spending rather than a rise in the budget deficit.

If the price of a good in the U.S. is $10 and the unit of foreign currency is the dinar, in which case is the real exchange rate 5/4?

Goods that cost 1/5 of one dollar in the U.S. cost one kroner in Denmark, the real exchange rate would be computed as how many Danish goods per U.S. goods?

Which of the following is an example of U.S. foreign direct investment?

Which of the following does purchasing-power parity imply?

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

If the number of Japanese yen a dollar buys falls, but neither country's price level changes, then the real exchange rate

Last year a country had $700 billion of saving and $900 of investment. This year it had $1000 billion of saving and $800 billion of investment. By how much did net capital outflow change? By how much did net exports change? How is it possible for a country to have saving that is greater than investment?

A country has $50 million of domestic investment and net capital outflow of $15 million. What is saving?