Economics questions 
34. If there is a surplus of loanable funds, which of the following best describes the consequences? A. The quantity demanded is greater than the quantity supplied, and the interest rate will rise. B. The quantity demanded is greater than the quantity supplied, and the interest rate will fall. C. The quantity demanded is less than the quantity supplied, and the interest rate will rise. D. The quantity demanded is less than the quantity supplied, and the interest rate will fall. 35. In the market for foreign-currency exchange in the open-economy macroeconomic model, which of the following does the amount of net capital outflow represent? A. the quantity of dollars supplied for the purpose of selling assets domestically B. the quantity of dollars supplied for the purpose of buying assets abroad C. the quantity of dollars demanded for the purpose of buying Canadian net exports of goods and services D. the quantity of dollars demanded for the purpose of importing foreign goods and services 36. Which of the following is included in the supply of dollars in the market for foreign-currency exchange in the open-economy macroeconomic model? CA. A retail outlet in Afghanistan wants to buy watches from a Canadian manufacturer. B. A Canadian bank loans dollars to Blair, a Canadian resident, who wants to purchase a new car made in Canada. C. A Canadian-based mutual fund wants to purchase stock issued by a Polish company. D. A Canadian resident imports a car made in Japan. 37. Which of the following is consistent with an appreciation of the dollar? A. Canadian goods become less expensive relative to foreign goods, which makes exports rise and imports fall. B. Canadian goods become less expensive relative to foreign goods, which makes exports fall and imports rise. C. Canadian goods become more expensive relative to foreign goods, which makes exports rise and imports fall. D. Canadian goods become more expensive relative to foreign goods, which makes exports fall and imports rise. 38. If Canadian citizens decide to purchase more foreign assets at each interest rate, which of the following best describes the effects? A. The real interest rate increases, the real exchange rate of the dollar appreciates, and Canadian net capital outflow decreases. B. The real interest rate increases, the real exchange rate of the dollar depreciates, and Canadian net capital outflow increases. C. The real interest rate decreases, the real exchange rate of the dollar depreciates, and Canadian net capital outflow decreases. D. The real interest rate decreases, the real exchange rate of the dollar appreciates, and Canadian net capital outflow increases. 39. Suppose that the government of Jordan raises its budget deficit. Which of the following best predicts the effects of this action? A. The real exchange rate of the Jordanian dinar would depreciate, and Jordanian net exports would rise. B. The real exchange rate of the Jordanian dinar would depreciate, and Jordanian net exports would fall. C. The real exchange rate of the Jordanian dinar would appreciate, and Jordanian net exports would rise. D. The real exchange rate of the Jordanian dinar would appreciate, and Jordanian net exports would fall. 40. Most economists use the aggregate demand and aggregate supply model primarily to analyze which of the following? A. short-run fluctuations in the economy B. the effects of macroeconomic policy on the prices of individual goods C. the long-run effects of international trade policies D. productivity and economic growth
