Exam 31: Open-Economy Macroeconomics: Basic Concepts

From 1970 to 1998 the U.S. dollar

Most of the change from 1980 to 1987 in U.S. net capital outflow as a percent of GDP was due to a(n)

A quality men's suit in the U.S. costs $400. The same suit costs 300 British pounds in the U.K. The nominal exchange rate is .60 pounds per dollar. A. Find the real exchange rate. Show your work. B. In terms of dollars where is the suit cheaper?

If purchasing-power parity holds, a bushel of rice costs $10 in the U.S., and the nominal exchange rate is 25 Thai baht per dollar, what is the price of rice in Thailand?

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

How do the nominal exchange rate and the real exchange rate differ?

A basket of goods costs $800 in the U.S. In Belgium the basket of goods costs 640 euros and the exchange rate is .80 euros per U.S. dollar. In Japan the basket of goods costs 90,000 yen and the exchange rate is 90 yen per dollar. Which country has purchasing-power parity with the U.S.?

Sam, a U.S. citizen, buys bonds issued by a Greek company that bottles olives. Sam's purchase is

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

If the exchange rate is 60 Indian rupees per dollar and a bushel of rice costs 200 rupees in India and $3 in the U.S., then the real exchange rate is

According to purchasing-power parity, if over the course of a year the price level in the U.S. rises more than in Canada, then which of the following rises?

If business opportunities in a country become relatively less attractive relative to those of other countries, then

If a country has Y > C + I + G, then

If over the next few years inflation is higher in Mexico than in the U.S., then according to purchasing-power parity which of the following should rise?

In the U.S. a digital camera costs $200. The same camera in London sells for 90 pounds. If the exchange rate were .50 pounds per dollar, then which of the following would be correct?

A Chinese company exchanges yuan (Chinese currency) for dollars. It uses these dollars to purchase scrap metal from a U.S. company. As a result of these transactions, Chinese

The real exchange rate is the nominal exchange rate, defined as foreign currency per dollar, times

If a country's net exports fall, then its net capital outflow falls by the same amount.

According to purchasing-power parity, if the price of a basket of goods in the U.S. rose from $1,500 to $2,000 and the price of the same basket of goods rose from 600 units of some other country's currency to 1,000 units of that country's currency, then the

The theory of purchasing­power parity states that a unit of a country's currency should be able to buy the same quantity of goods in foreign countries as it does in the domestic economy.