Exam 14: A Macroeconomic Theory of the Open Economy

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

If the demand for net exports rises, which of the following happens in the open-economy macroeconomic model?

The value of net exports equals the value of

Figure 32-5 Refer to this diagram of the open-economy macroeconomic model to answer the questions below. -Refer to Figure 32-4. Suppose that the government goes from a budget surplus to a budget deficit. The effects of the change could be illustrated by

Over the past two decades the U.S. has persistently had trade deficits.

In an open economy, the demand for loanable funds comes from

Other things the same, as the real interest rate rises

Suppose that U.S. savers decide that holding Brazilian assets has become riskier. What happens to U.S. net capital outflow? What happens to the U.S. real interest rate?

An increase in a country's budget surplus shifts its

If the U.S. government imposes a quota on imports of jet planes, then

An increase in the U.S. government budget deficit shifts the

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

Depositors Move Funds out of Greek Banks. In 2011 Greek citizens were concerned about the size of government debt. Fearful that the government might be unable to fulfill its promise to insure depositors in Greek banks against losses created by bank failures, depositors moved funds out of Greek banks. -Refer to Depositors Move Funds Out of Greek Banks. Because of depositors reactions what happened to net capital outflow?

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

If at a given exchange rate U.S. citizens wanted to buy more foreign bonds

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

In the market for foreign-currency exchange, the source of the supply of dollars is _________. The supply curve is _________ because _____________.

If there is a shortage of loanable funds, then

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

A country has domestic investment of $200 billion. Its citizens purchase $600 of foreign assets and foreign citizens purchase $300 of its assets. What is national saving?