Exam 15: Net Exports and International Finance

Suppose Townsend's exports equal $1,000 billion, its imports equal $950 billion, and Jpurchases of foreign assets by its citizens equals $900 billion. What is Townsend's balance on its current account?

Figure 15-1 -Refer to Figure 15-1. An increase in U.S. imports would shift the

Net exports equal

Under the Bretton Woods system, each currency's value was to be fixed relative to other currencies. What was the mechanism for maintaining these rates?

Suppose Boulinas' exports equal $50 billion, its purchases of foreign assets equal $100 Jbillion, and foreign purchase of Boulinas' assets equal $200 billion. What is Boulinas' Jbalance on its current account?

If the U.S. exchange rate increases relative to currencies in other countries, then

Technological changes have changed production worldwide toward the application of Jcomputers to manufacturing processes. How does this affect countries that have a Jcomparative advantage in the production of high-tech equipment, such as the United States?

The negative relationship between the price level and

A tax imposed by a country on an imported good or service is called a

Suppose Jaffe's exports equal $50 billion, its purchases of foreign assets equal $200 Jbillion, and foreign purchase of Jaffe's assets equal $100 billion. What is Jaffe's balance on its capital account?

Suppose Boulinas' exports equal $50 billion, its purchases of foreign assets equal $100 Jbillion, and foreign purchase of Boulinas' assets equal $200 billion. What is the value of JBoulinas' imports?

Suppose Townsend's exports equal $1,000 billion, its imports equal $950 billion, and Jpurchases of foreign assets by its citizens equals $900 billion. What is Townsend's balance on its capital account?

Suppose the price of Alston's currency is rising very rapidly. The Central Bank of Alston Jannounced that it might seek to hold off further increases in order to prevent a major Jreduction in net exports. How are buyers and sellers in Alston's foreign exchange market Jlikely to respond to this announcement?

An increase in a country's exchange rate will

A ceiling imposed by a country on the quantity of a good or service it will import is called a

Consider the market for U.S. dollars. Which of the following is true in equilibrium? I. The quantity demanded of U.S. dollars equals the U.S. money supply. II. U.S. exports + foreign purchases of U.S. assets equal U.S. imports + purchases of foreignassets by U.S. citizens. III. The quantity demanded of U.S. dollars equals the quantity supplied of U.S. dollars. IV. The quantity supplied of U.S. dollars by U.S. nationals equals the quantity demanded of U.S. dollars by foreign nationals.

A statement of spending flows into and out of the country during a particular period for Jpurchases of assets is called a

All other things unchanged, a recession in Japan

All other things unchanged, what happens if the U.S. reduces its quota on sugar imports?

The current account deficit and capital account surplus of the United States