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INTERMEDIATE MACROECONOMICS
EXAM 2 2026 ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
Chapter 6
1. The sum of all domestic spending on foreign goods is called:
a. consumption.
b. imports.
c. exports.
d. net exports. - correct answer-B
2. Consider the following table (look). Based on the data, what
are net exports?
a. -20
b. 0
c. 120
d. 1,580 - correct answer-A
3. If net exports are positive, which of the following is FALSE?
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a. Domestic output exceed domestic spending
b. Domestic saving exceeds domestic investment
c. Net capital outflow is positive
d. There is a trade deficit - correct answer-D
4. If net capital outflow is positive, then:
a. S - 1 is negative
b. Private savings exceeds private investment
c. NX is positive
d. Public saving exceeds public investment - correct answer-C
5. In a small open economy, the interest rate is determined by
the:
a. Equilibrium of saving and investment
b. Interest rate in the rest of the world
c. Excess of government spending over government revenue
d. Value of net capital outflow - correct answer-B
6. If a Canadian investor buys one million dollars worth of stock
in an American company, how does this transaction appear in
the national income accounts of the United States?
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a. The balance of trade rises as we export $1 million of stock
b. The balance of trade falls as we import Canadian investment
c. Net capital outflow rises by $1 million
d. Net capital outflow falls by $1 million - correct answer-D
7. Consider the following data on the Transalpinian economy:
Y=1,000; C=700; G=150; I=250-10r*. The world interest rate is
5. What are the net exports of Transalpinia?
a. 50
b. (50)
c. 150
d. (150) - correct answer-B
8. Consider the following data on the Transalpinian economy:
Y=1,000; C=650; G=200; I250-20r*. The world interest rate is
7.5 percentage points. How must the world interest rate change
to make net exports zero?
a. It must rise by 5 percentage points
b. It must rise by 2.5 percentage points
c. It must remain constant
d. It must fall by 2.5 percentage points - correct answer-D
INTERMEDIATE MACROECONOMICS
EXAM 2 2026 ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
Chapter 6
1. The sum of all domestic spending on foreign goods is called:
a. consumption.
b. imports.
c. exports.
d. net exports. - correct answer-B
2. Consider the following table (look). Based on the data, what
are net exports?
a. -20
b. 0
c. 120
d. 1,580 - correct answer-A
3. If net exports are positive, which of the following is FALSE?
, Page | 2
a. Domestic output exceed domestic spending
b. Domestic saving exceeds domestic investment
c. Net capital outflow is positive
d. There is a trade deficit - correct answer-D
4. If net capital outflow is positive, then:
a. S - 1 is negative
b. Private savings exceeds private investment
c. NX is positive
d. Public saving exceeds public investment - correct answer-C
5. In a small open economy, the interest rate is determined by
the:
a. Equilibrium of saving and investment
b. Interest rate in the rest of the world
c. Excess of government spending over government revenue
d. Value of net capital outflow - correct answer-B
6. If a Canadian investor buys one million dollars worth of stock
in an American company, how does this transaction appear in
the national income accounts of the United States?
, Page | 3
a. The balance of trade rises as we export $1 million of stock
b. The balance of trade falls as we import Canadian investment
c. Net capital outflow rises by $1 million
d. Net capital outflow falls by $1 million - correct answer-D
7. Consider the following data on the Transalpinian economy:
Y=1,000; C=700; G=150; I=250-10r*. The world interest rate is
5. What are the net exports of Transalpinia?
a. 50
b. (50)
c. 150
d. (150) - correct answer-B
8. Consider the following data on the Transalpinian economy:
Y=1,000; C=650; G=200; I250-20r*. The world interest rate is
7.5 percentage points. How must the world interest rate change
to make net exports zero?
a. It must rise by 5 percentage points
b. It must rise by 2.5 percentage points
c. It must remain constant
d. It must fall by 2.5 percentage points - correct answer-D
