Exam 15: Open Economy Macroeconomics

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Which of the following statements is true? i.The nominal exchange rate is a price. ii.Both nominal and real exchange rates are expressed in units of domestic currency.

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Which of the following is true of a country with a managed exchange rate system?

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Briefly state one of the reasons that would make a country want to adopt a fixed exchange rate system.

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The following table shows the exchange rate between several foreign currencies and the U.S. dollar. The following table shows the exchange rate between several foreign currencies and the U.S. dollar.    -Refer to the table above.Between May 2016 and May 2017,the U.S.dollar has ________ against the British pound,and the yen has ________ against the U.S.dollar. -Refer to the table above.Between May 2016 and May 2017,the U.S.dollar has ________ against the British pound,and the yen has ________ against the U.S.dollar.

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In the foreign exchange market,the higher the exchange rate is,________ will be.

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Why was George Soros known as the "man who broke the Bank of England"?

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If the government of a country adopts an expansionary monetary policy,________.

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The dollar demand curve in the foreign exchange market is ________.

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The following figure shows the demand and supply curve for dollars against the rupee. The following figure shows the demand and supply curve for dollars against the rupee.    -Refer to the figure above.The equilibrium exchange rate in this case is ________. -Refer to the figure above.The equilibrium exchange rate in this case is ________.

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The exchange rate of a currency in a black market will be ________ than the official exchange rate.

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If a toy costs 30 yuan in China,how much will it cost in dollars,if the exchange rate is 6 yuan per dollar?

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Everything else being equal,a depreciation of the real exchange rate ________ net exports and ________ GDP.

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How do black markets for currencies form?

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The following figure shows the net exports curve for a country: The following figure shows the net exports curve for a country:    -Refer to the figure above.When the real exchange rate is above R*,there is a trade surplus. -Refer to the figure above.When the real exchange rate is above R*,there is a trade surplus.

(True/False)
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Which of the following statements is true? i.The flexible and the floating exchange rate systems are equivalent. ii.The fixed and managed exchange rate systems are equivalent.

(Multiple Choice)
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Everything else being equal,a depreciation of the dollar will cause ________.

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The yuan-dollar exchange rate is currently ________.

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Everything else being equal,an appreciation of the dollar will ________.

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In the foreign exchange market,the lower the exchange rate is,________ will be.

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Which of the following will restore an economy to full employment if it is operating below full employment because of a decrease in net exports?

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