Exam 16: International Trade in Goods and Assets

The adoption of capital controls makes

In the monetary small open-economy model with a fixed exchange rate, an increase in the foreign price level

In the monetary small open-economy model with a fixed exchange rate, an increase in the world real interest rate

In the New Keynesian open economy model, an increase in the tariff imposed by the rest of the world on the exports of the SOE causes

Adoption of a currency board

A capital inflow occurs when

A natural region over which a single currency dominates as a medium of exchange is called

Purchasing power parity may not hold in practice due to

A hard peg may be achieved by

The large exchange rate depreciations which preceded the Asian Crisis was likely the result of

In the New Keynesian open economy model with a flexible exchange rate, a decrease in tariffs imposed by the domestic government on imports causes

In the New Keynesian open economy model with a fixed exchange rate, suppose that the output gap is initially zero and there is an increase in labour supply. What is the correct policy response To keep the output gap at zero?

The International Monetary Fund plays the key role of

In the New Keynesian open economy model, a decrease in the tariff imposed by the SOE on imports causes

In the New Keynesian open economy model, suppose the exchange rate is flexible and there is a decline in total factor productivity

In response to a temporary change in total factor productivity, the adoption of capital controls under a fixed exchange rate

A key international institution that plays an important role in exchange rate determination is the

In the New Keynesian open economy model with a flexible exchange rate, suppose there is an increase in money demand. Which of the following happens?

Purchasing power parity assumes

The balance of payments is zero