Multiple Choice / Simple Finance_complete all answers correct.
WRITTEN ASSIGNMENT #6 Rubric Answers Spring 18 I. Answer the following multiple choice questions (2 points each): 1. Fiscal Policy is . a) Limits on the amount of a product imported b) Recurring pattern of ups and downs in the nation's business activity c) Government’s taxing and spending decisions which are intended to improve the economy d) Deep extended decline in the nation's economy. 2. Which of the following is NOT an important U.S. import? a) electronic products b) motor vehicles c) aircraft d) coffee and tea 3. When a country spends more on imports than it earns on exports, it has a . a) trade deficit b) trade surplus c) balanced trade d) shortage of trade 4. A tax on imported goods is called . a) entrance tax b) exit tax c) tariff d) excise tax 5. A deep, extended decline in a nation’s economy is a . a) deficit b) recession c) depression d) displacement 6. When individual nations prosper, the world economy . a) grows b) declines c) lapses d) competes 7. Goods and services sold by one country to another are called its . a) imports b) exports c) GDP d) bartering 8. The price of one currency in terms of another currency is the . a) inflation b) absolute rate c) exchange rate d) recession rate 9. Countries do NOT usually benefit from trading with each other. True or false 10. Monetary policy is . a) Government’s efforts to help stabilize the economy by managing interest rates, the availability of loans, and the supply of money b) Value of all nation’s exports minus the value of its imports c) Tax on imported goods d) The current value of all goods and services produced in a country in a year II. Short Answer (20 points each) 1. The exchange rate for money entering Mexico is $1=10.80 pesos. During your visit to Mexico the exchange rate changes to $1=11.00 pesos. If you took $500 into the country exchanged it for pesos and then left with 500 pesos, how many dollars worth of pesos would you have when you exchanged it back into dollars? 500 pesos/11.00 pesos=$45.45 2. Why do labor costs affect where multinational corporations choose to produce their goods? Lower labor costs make the goods produced cheaper and more competitive for the company to relocate production to other countries. 3. How do changes in business activity in one nation affect other nations? As one nation prospers it helps other nations and conversely as one nation is in recession, it hurts other countries. You should also explain why that is with an example, but main thought is shared above. 4. If the U.S. dollar increases in value how does that affect the American traveling in Europe? How would it affect the Korean visiting the United States? An increase in the value of the dollar in the U.S. compared to other countries currency means that the American consumer traveling in Europe will find things cheaper than previously and conversely the Korean traveling in the U.S. will find things more expensive.
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Onderwerpen
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fiscal policy is
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it has a
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a tax o
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answer the following multiple choice questions
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which of the following is not an important us import
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when a country spends more on imports than it earns on exports
