Exam 18: Open-Economy Macroeconomic Models

If the exchange rate is 70 Bangladesh taka per dollar and a bushel of rice costs 200 taka in Bangladesh and $3 in the United States, then the real exchange rate is

Other things the same, if the exchange rate changes from .30 Kuwaiti dinar per dollar to .35 Kuwaiti dinar per dollar, then the dollar has

It costs $80 for a dental appointment in the U.S. It costs 600 Egyptian pounds for the same appointment in Egypt. The nominal exchange rate is 7 pounds per dollar. The real exchange rate is

If business opportunities in a country become relatively less attractive relative to those of other countries, then

Other things the same, if a country has a trade deficit and saving rises,

If U.S. residents purchase $500 billion of foreign assets and foreigners purchase $1300 billion of U.S. assets,

Which of the following does purchasing-power parity imply?

If the real exchange rate is 5/4 pounds of Chilean beef per pound of U.S. beef, a pound of U.S. beef costs $2 and the nominal exchange rate is 500 Chilean pesos per dollar, then Chilean beef costs

Firms in Saudi Arabia sell oil to the U.S. Other things the same, these oil sales

Which of the following is an example of U.S. foreign direct investment?

A Mexican firm exchanges Pesos for U.S. dollars and then uses these dollars to purchase corn from the U.S. This transaction

A country has $1.5 billion dollars of domestic investment and net exports of $2 billion. What is its saving?

According to purchasing power parity, if over the course of a year the price level in the U.S. rises more than in Japan, then which of the following falls?

Suppose that the nominal exchange rate is .80 euro per dollar, that the price of a basket of goods in the U.S. is $500 and the price of a basket of goods in Germany is 400 Euro. Suppose that these values change to .90 euro per dollar, $600, and 600 euro. Then the real exchange rate would

If purchasing-power parity holds, then the value of the

If there is a trade deficit, then

Suppose that because of legal and financial reforms in the country of Belats, foreigners find business opportunities there more attractive. We would expect the more attractive opportunities would cause Belats'

A U.S. based company sells semiconductors to an Italian firm. The U.S. company uses all of the revenues from this sale to purchase automobiles from Italian firms. These transactions

After 1980 in the United States,

If US goods cost one dollar for each euro German goods costs, the real exchange rate would be computed as how many German goods per U.S. goods?