Exam 31: Open-Economy Macroeconomics: Basic Concepts

If domestic residents of other countries purchase $600 billion of U.S. assets and U.S residents purchase $500 billion of foreign assets, then U.S. net capital outflow is

Table 31-2 -Refer to Table 31-2. In real terms, U.S. goods are more expensive than goods in which country(ies)?

According to purchasing-power parity, if it took 55 Indian rupees to buy a dollar today, but it took 58 to buy it a year ago, then the dollar has

A bushel of apples costs $15.00 in the U.S. The same apples cost 1,600 yen in Japan. If the exchange rate is 80 yen per dollar, is there a possibility for arbitrage? Explain and defend your answer. As part of your defense, find the real exchange rate.

Other things the same, if the exchange rate changes from .8 euros per dollar to .9 euros per dollar, the dollar

Table 31-1 -Refer to Table 31-1. What are Bolivia's imports?

According to purchasing-power parity, if two countries have the same price level because they have the same prices for all goods and services, then which of the following would equal 1?

According to purchasing-power parity what should the nominal exchange rate between the U.S. and another country be equal to?

Suppose the real exchange rate is 5/4 of a Canadian textbook per U.S. textbook , a U.S. textbook costs $150, and a Canadian one costs 120 Canadian dollars. To the nearest penny, what is the nominal exchange rate?

If the unit of foreign currency is the peso, in which case is the real exchange rate 1.2?

Which of the following both reduce net exports?

When net capital outflow is negative, it means that on net the value of domestic assets purchased by foreigners exceeds the value of foreign assets purchased by domestic residents.

A U.S. citizen buys bonds issued by a construction equipment manufacturer in Poland. Her expenditures are U.S.

If the exchange rate is 12.5 pesos per U.S. dollar, it is also 1/12.5 U.S. dollars per peso.

John, a U.S. citizen, opens up a Sports bar in Tokyo. This is an example of U.S.

How do we find the real exchange rate from the nominal exchange rate?

Mike, a U.S. citizen, buys $1,000 worth of olives from Greece. By itself this purchase

An American retailer sells dollars to obtain euros. It then uses the euros to buy ready-to-assemble furniture from Sweden. These transactions

According to purchasing power parity, the nominal exchange rate between the U.S. and another country should equal the price level of foreign goods divided by the price level of U.S. goods.

Suppose that real interest rates in the U.S. rise relative to real interest rates in other countries. This increase would make foreigners