Exam 29: Macroeconomics in an Open Economy

In international exchange markets,a rise in interest rates in the United States will cause the demand for dollars to ________ and the supply of dollars to ________.

If net foreign investment is negative,which of the following must be true?

If there is currently a surplus of dollars,which of the following would you expect to see in the foreign exchange market?

Which of the following is not "crowded out" by higher interest rates as a result of expansionary fiscal policy?

The current account includes records of a country's

What effect does a depreciation of the dollar have on real GDP in the United States in the short run?

If Californians increase their purchases of Italian wine,assuming all else remains constant,this will ________ of the United States.

The decline in the value of the yen in 2014 and 2015 occurred as a result of the Japanese central bank,the Bank of Japan,following an expansionary monetary policy.Investors expected that the result would be lower nominal Japanese interest rates and a higher inflation rate.In response,investors ________,causing the value of the yen to decline against the dollar.

If New Yorkers decrease their purchases of French champagne,assuming all else remains constant,this will ________ of the United States.

Explain how "net capital flows" are related to "net foreign investment," "net foreign direct investment," and "net foreign portfolio investment."

Assuming the United States is the "domestic" country,if the real exchange rate between the United States and Russia decreases from 28 to 23

How is the impact of expansionary monetary policy different in an open economy than in a closed economy?

Ceteris paribus,a decrease in the government's budget deficit will increase domestic investment and net foreign investment.

If net foreign investment in the United States is negative,how must national saving and domestic investment be related?

Which of the following would decrease the balance on the current account?

A decrease in United States net foreign direct investment would occur if

If net foreign investment is positive,which of the following must be true? (Assume that the capital account is zero and net transfers are zero. )

What is the relationship between the balance of trade and the current account balance?

The current account deficits incurred by the United States in the 1980s were caused,in the opinion of many economists,by

Why is the U.S.trade deficit almost always larger than the U.S.current account deficit?