Question
1. An increase in the demand for American-made goods will Group of answer choices a. increase the demand for dollars on the foreign exchange market.
1. An increase in the demand for American-made goods will
Group of answer choices
a. increase the demand for dollars on the foreign exchange market.
b. increase the supply of dollars on the foreign exchange market.
c. decrease the supply of dollars on the foreign exchange market.
d. decrease the demand for dollars on the foreign exchange market.
2. Which of the following transactions would be included in Germany's current account?
Group of answer choices
a. An American citizen purchases 100 shares of BMW stock.
b. An American citizen purchases a new Volkswagen made in Germany.
c. A German citizen purchases a new Volkswagen made in Germany.
d. A German citizen purchases 100 shares of Texas Instruments stock.
3.The current account does not include which of the following?
Group of answer choices
net transfers
a. U.S. holdings of foreign assets
b. net investment income
c. net exports
4. The following table represents a simple, fictional economy. It shows the products being produced each year and the price the product is sold for. Use the information in the table to answer the following question:
What is the real GDP in the year 2015 if 2014 is the base year? Please round to two decimal places and do not include the dollar sign. For example, if your answer turns out to be $574.2486, you would enter 574.25
2014 Price | 2014 Quantity | 2015 Price | 2015 Quantity | |
Blankets | $1.17 | 13 | $1.33 | 20 |
Headphones | $17.03 | 8 | $23.80 | 11 |
Sunglasses | $4.00 | 22 | $2.59 | 24 |
5. If real GDP in 2015 is 35,315 and nominal GDP in 2015 is 37,370, what is the GDP deflator in 2015? Please round your answer to 2 decimal places.
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