Question
1. If net capital flows were -28 billion and domestic investment was 17 billion, then the amount of domestic savings was A) -11 billion. B)
1. If net capital flows were -28 billion and domestic investment was 17 billion, then the amount of domestic savings was
A) -11 billion. B) 45 billion. C) 11 billion. D) -9 billion.
2. The United States is currently a net debtor nation. This means that
A) U.S. consumers have a great variety of foreign goods available to them.
B) the U.S. economy is in serious trouble if government policies don't change quickly.
C) capital outflows from the U.S. are greater than inflows.
D) the U.S. is seen as a poor investment by foreign citizens and firms.
3. Which of the following exchange rates account for changes in price levels between two nations?
A) bilateral exchange rates 4 B) nominal exchange rates C) real exchange rates D) forward exchange rates
4.If last year's inflation rate in South Korea was 5.4% and last year's inflation rate in the U.S. was 3.2%, we would expect the change in the Dollar/Won rate to have
A) decreased by 2.2%. B) increased by 2.2%. C) decreased by 1.6875%. D) increased by 4.7%
5. If it used to take $2 to buy a Swiss franc and now it takes $1.50 to buy a Swiss franc, then
A) the dollar must have appreciated.
B) the franc must have appreciated.
C) the fed must have intervened in the exchange markets.
D) the value of Swiss francs must have increased.
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