Exam 18: Open-Economy Macroeconomic Models

If a county has 25 billion euros of imports, 15 billion euros of exports, and sells 20 billion euros of assets to foreigners, how many foreign assets do domestic residents purchase?

If a country has negative net capital outflows, then its net exports are

If purchasing-power parity holds, a dollar will buy

If a U.S. shirt maker purchases cotton from Egypt, U.S. net exports

If domestic residents of France purchase 1.2 trillion euros of foreign assets and foreigners purchase 1.5 trillion euros of French assets, then France's net capital outflow is

Prices in both the U.S. and China rise, but prices in China increase by a smaller percentage. According to purchasing-power parity the U.S. dollar

If the U.S. purchases more assets from foreign countries then foreign countries purchase from it, the U.S. has a positive net capital outflow.

According to purchasing-power parity, if prices in the United States increase by a smaller percentage than prices in Poland, then

If Norway sold more goods and services abroad than it purchased from abroad, then it had

A roll of duct tape costs 2 Canadian dollars in Canada and 1.75 U.S. dollars in the U.S. If the nominal exchange rate were 1.10 Canadian dollars per U.S. dollar.

From 1970 to 1998 the U.S. dollar

According to purchasing power parity, if it took 3.5 Israeli Shekels to buy a dollar this year, but it took 4 to buy it last year, then the dollar has

Which type(s) of economies interact with other economies?

Net capital outflow is defined as the purchase of

You are planning a graduation trip to Nepal. Other things the same, if the dollar appreciates relative to the Nepalese rupee, then

If the price of a good in the U.S. is $10, the exchange rate is 2 units of foreign currency per dollar, and the foreign price of the same good is 30 units of foreign currency, then the real exchange rate is 2/3.

Net exports measures the difference between a country's

If a country's imports exceed its exports it has a trade surplus.

Other things the same, an increase in the real exchange rate raises U.S. net exports.

Suppose that the real return from operating factories in Ghana rises relative to the real rate of return in the United States. Other things the same,