Question 1

Which of the following best predicts the effects of a fall in the Canadian real interest rate?

Accepted Answer

A)  Owning Canadian assets becomes less attractive, and net capital outflow rises.
B)  Owning Canadian assets becomes less attractive, and net capital outflow falls.
C)  Owning Canadian assets becomes more attractive, and net capital outflow rises.
D)  Owning Canadian assets becomes more attractive, and net capital outflow falls.

Question 2

Which of the following is the correct way to show the effects of a new import quota?

Accepted Answer

A)  shift the demand for loanable funds right, the supply of dollars for foreign exchange right, and the demand for dollars left
B)  shift the demand for loanable funds right, and the supply of dollars for foreign exchange left
C)  shift the demand for dollars for foreign currency exchange left
D)  shift the demand for dollars for foreign currency exchange right

Question 3

Which of the following does the open-economy macroeconomic model take as given?

Accepted Answer

A)  GDP, but not the price level
B)  the price level, but not GDP
C)  both the price level and GDP
D)  the exchange rate

Question 4

In the open-economy macroeconomic model, which of the following would make Mexico's net capital outflow decrease?

Accepted Answer

A)  a decrease in Canadian interest rates
B)  a decrease in Mexican interest rates
C)  an appreciation of the Mexican peso
D)  an increase in Mexico's net exports

Exam 13: A Macroeconomic Theory of the Open Economy

Which of the following is the correct way to show the effects of a new import quota?

Correct Answer
verified

In the open-economy macroeconomic model, which of the following would make Mexico's net capital outflow decrease?

Correct Answer
verified

Which of the following does the open-economy macroeconomic model take as given?

Correct Answer
verified

Which of the following best predicts the effects of a fall in the Canadian real interest rate?

Correct Answer
verified

Exam 13: A Macroeconomic Theory of the Open Economy

Which of the following is the correct way to show the effects of a new import quota?

Correct AnswerverifiedShow Answer

In the open-economy macroeconomic model, which of the following would make Mexico's net capital outflow decrease?

Correct AnswerverifiedShow Answer

Which of the following does the open-economy macroeconomic model take as given?

Correct AnswerverifiedShow Answer

Which of the following best predicts the effects of a fall in the Canadian real interest rate?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified