Exam 14: A Macroeconomic Theory of the Open Economy

Suppose that the United States imposes an import quota on televisions. In the open-economy macroeconomic model this quota shifts the

A country recently had 500 billion euros of national saving and 200 billion euros of domestic investment. What was its net capital outflow? What was its quantity of loanable funds demanded?

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

A country has private saving of $500 billion, public saving of -$100 billion, domestic investment of $150 billion, and net capital outflow of $250 billion. What is its supply of loanable funds?

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

A country reduces its government budget deficit and also makes political reforms that lead people to believe this country's assets are less risky. Given the combination of a reduced deficit and lower asset risk, what happens to the interest rate?

If at a given real interest rate desired national saving is $60 billion, domestic investment is $30 billion, and net capital outflow is $20 billion, then at that real interest rate in the loanable funds market there is a

Which of the following happens in the market for loanable funds when there is capital flight?

If a country raises its budget deficit then

Over the past two decades, the U.S. has persistently exported more goods and services than it has imported.

If a country's budget deficit rises, then its exchange rate

When a country imposes an import quota, its

If at a given real interest rate desired national saving is $140 billion, domestic investment is $90 billion, and net capital outflow is $60 billion, then at that real interest rate in the loanable funds market there is a

In the open-economy macroeconomic model, if net capital outflow increases then

In the open-economy macroeconomic model, if there is a surplus in the market for foreign-currency exchange, which of the following will move the market to equilibrium?

Which of the following is the correct way to show the effects of a newly imposed import quota?

When a country experiences capital flight its interest rate

In an open economy, the source for the demand for loanable funds is

If the U.S. government imposes a quota on leather shoes, then net exports of U.S. shoes would

In the open-economy macroeconomic model which of the following falls if there is an increase in the budget deficit?