Chapter 18 eco MACROECON CHAPTER 18 QUIZZES AND HW REVIEW TOTAL.

Chapter 18 eco MACROECON CHAPTER 18 QUIZZES AND HW REVIEW TOTAL

 f the U.S. inflation rate is positive and higher than the inflation rate in Australia over the next
few years then
Selected c.
Answer: the U.S. dollar will buy fewer goods in the U.S. and buy fewer Australian
dollars in the market for foreign currency exchange.
Answers: a.
the U.S. dollar will buy fewer goods in the U.S. but buy more Australian
dollars in the market for foreign currency exchange.
b.
the U.S. dollar will buy more goods in the U.S. but buy fewer Australian
dollars in the market for foreign currency exchange.
c.
the U.S. dollar will buy fewer goods in the U.S. and buy fewer Australian
dollars in the market for foreign currency exchange.
d.
the U.S. dollar will buy more goods in the U.S. and buy more Australian
dollars in the market for foreign currency exchange.

 Question 2

1 out of 1 points

Which of the following is the correct way to find the real exchange rate?
Selected Answer: c.




Answers: a.




b.




c.

, d.




 Question 3

1 out of 1 points

Purchasing-power parity means that the prices of goods in terms of local currencies must be
the same across countries.
Selected Answer: False
Answers: True
False

 Question 4

1 out of 1 points

A U.S. retail store uses dollars to purchase yuan (Chinese currency) it then uses all of these
yuan to buy toys from a Chinese firm. Overall these transactions have
Selected Answer: d.
decreased U.S. net exports and decreased U.S. net capital outflow.
Answers: a.
increased U.S. net exports and decreased U.S. net capital outflow.
b.
increased U.S. net exports and increased U.S. net capital outflow.
c.
decreased U.S. net exports and increased U.S. net capital outflow.
d.
decreased U.S. net exports and decreased U.S. net capital outflow.

 Question 5

1 out of 1 points

An open economy can only finance its investment purchases with domestic saving.
Selected Answer: False
Answers: True
False

,  Question 6

1 out of 1 points

Other things the same, if the U.S. dollar appreciates, then U.S. goods become
Selected Answer: d.
more expensive relative to foreign goods, so U.S. net exports decrease.
Answers: a.
cheaper relative to foreign goods, so U.S. net exports increase.
b.
more expensive relative to foreign goods, so U.S. net exports increase.
c.
cheaper relative to foreign goods, so U.S. net exports decrease.
d.
more expensive relative to foreign goods, so U.S. net exports decrease.

 Question 7

0 out of 1 points

If a country’s real GDP is 10,000, its consumption is 6,500, its government expenditures are
2,000 and its net exports are 500 what are saving and net capital outflow?
Selected Answer: a.
1500, -500
Answers: a.
1500, -500
b.
1000, 500
c.
1000, -500
d.
1500, 500

 Question 8

1 out of 1 points

A mutual fund in China buys $100,000 of bonds sold by a U.S. corporation. This is an
example of