Hi can you please answer this questions, I would really appreciate it. It depends on my grade and I just want to be 100% right about them.

Thank you and best regards

QUESTION 1

1. The open-economy macroeconomic model takes
2. a.the price level and GDP as variables to be determined by the model.
3. b.GDP, but not the price level as given.
4. c.the price level, but not GDP as given.d.both the price level and GDP as given.

QUESTION 2

1. 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?
2. a.None of the above are correct.
3. b.4000
4. c.500
5. d.2000

QUESTION 3

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

1. a.more than one, so a profit could be made by buying jeans in the U.S. and selling them in Algeria.
2. b.less than one, so a profit could be made by buying jeans in the U.S. and selling them in Algeria.
3. c.more than one, so a profit could be made by buying jeans in Algeria and selling them in the U.S.
4. d.less than one, so a profit could be made by buying jeans in Algeria and selling them in the U.S.

QUESTION 5

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.

QUESTION 7

Other things the same, if foreign residents desired to purchase less U.S. wheat

1. a.the exchange rate and net exports would rise.
2. b.the exchange rate would fall and net exports would rise.
3. c.the exchange rate would rise and net exports would be unchanged.
4. d.the exchange rate would fall and net exports would be unchanged.

QUESTION 8

When the U.S. real interest rate falls

1. a.U.S. purchases of foreign assets and foreign purchases of U.S. assets rise
2. b.U.S. purchases of foreign assets fall and foreign purchases of U.S. assets rise
3. c.U.S. purchases of foreign assets rise and foreign purchases of U.S. assets fall
4. d.U.S. purchases of foreign assets and foreign purchases of U.S. assets fall

QUESTION 9

If a Zackland, a small country, passes a budget policy that results in an increase in its budget deficit, then

1. a.domestic investment decreases and NCO increases.
2. b.domestic investment and NCO decrease.
3. c.its demand for but not its supply of loanable funds shifts.
4. d.both its demand for and its supply of loanable funds shifts.

QUESTION 10

Most economists use the aggregate demand and aggregate supply model primarily to analyze

1. a.short-run fluctuations in the economy.
2. b.the long-run effects of international trade policies.
3. c.productivity and economic growth.
4. d.the effects of macroeconomic policy on the prices of individual goods.

QUESTION 11

During recessions

1. a.sales rise, profits fall
2. .b.profits fall, sales rise
3. .c.sales and profits rise.
4. d.sales and profits fall.

QUESTION 12

Cohleburg, a country that has repealed a tax credit for firms investing in new projects, will also likely see

1. a.NCO falls and the real exchange rate rises.
2. b.real interest rates decrease and the trade balance improves.
3. c.real exhange rates decrease and the trade balance worsens.
4. d.net capital outflow rises and the real exchange rate rise.

QUESTION 13

When the price level changes, which of the following variables will change and thereby cause a change in the aggregate quantity of goods and services demanded?

1. a.the real value of goods
2. b.the real interest rate
3. c.the value of currency in the market for foreign exchange
4. d.All of the above are correct.

QUESTION 14

U.S. Financial Crisis: Suppose that foreigners had increased confidence in U.S. financial institutions and believed that privately issued U.S. bonds were less likely to be defaulted on.

Refer to U.S. Financial Crisis.U.S. net exports would

1. a.rise which by itself would decrease aggregate demand.
2. b.rise which by itself would increase aggregate demand.
3. c.fall which by itself would decrease aggregate demand.
4. d.fall which by itself would increase aggregate demand.

QUESTION 15

Which of the following lists includes only changes that shift aggregate demand to the left?

1. a.the federal reserve buying bonds
2. b.repeal of an investment tax credit, a decrease in the money supply
3. c.passing of an investment tax credit, an increase in the money supply
4. d.an increase in government spending