Question
Can you please answer this questions. Thank you The open-economy macroeconomic model takes a.the price level and GDP as variables to be determined by the
Can you please answer this questions. Thank you
The open-economy macroeconomic model takes
a.the price level and GDP as variables to be determined by the model.
b.GDP, but not the price level as given.
c.the price level, but not GDP as given.
d.both the price level and GDP as given.
The price of a basket of goods is $2000 in the U.S. If purchasing-power parity holds, and one unit of a foreign country's currency buys two dollars, then how many units of foreign currency does the same basket of goods cost in that country?
a.None of the above are correct.
b.4000
c.500
d.2000
A pair of jeans cost $20 in the U.S. and 1600 dinar in Algeria. If the nominal exchange rate is 75 dinar per U.S. dollar, then the real exchange rate is
a.more than one, so a profit could be made by buying jeans in the U.S. and selling them in Algeria.
b.less than one, so a profit could be made by buying jeans in the U.S. and selling them in Algeria.
c.more than one, so a profit could be made by buying jeans in Algeria and selling them in the U.S.
d.less than one, so a profit could be made by buying jeans in Algeria and selling them in the U.S.
If at a given real interest rate desired national saving is $150 billion, domestic investment is $90 billion, and net capital outflow is $70 billion, then
a.the real interest rate will rise and net exports will rise.
b.the real interest rate will fall and net exports will rise.
c.the real interest rate will fall and net exports will fall.
d.the real interest rate will rise and net exports will fall.
Other things the same, if foreign residents desired to purchase less U.S. wheat
a.the exchange rate and net exports would rise.
b.the exchange rate would fall and net exports would rise.
c.the exchange rate would rise and net exports would be unchanged.
d.the exchange rate would fall and net exports would be unchanged.
When the U.S. real interest rate falls
a.U.S. purchases of foreign assets and foreign purchases of U.S. assets rise
b.U.S. purchases of foreign assets fall and foreign purchases of U.S. assets rise
c.U.S. purchases of foreign assets rise and foreign purchases of U.S. assets fall
d.U.S. purchases of foreign assets and foreign purchases of U.S. assets fall
If a Zackland, a small country, passes a budget policy that results in an increase in its budget deficit, then
a.domestic investment decreases and NCO increases.
b.domestic investment and NCO decrease.
c.its demand for but not its supply of loanable funds shifts.
d.both its demand for and its supply of loanable funds shifts.
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