Exam 31: Open-Economy Macroeconomics: Basic Concepts

When a company from Germany builds an automobile factory in the United States,the German firm has engaged in foreign direct investment.

If a country changes its corporate tax laws so that foreign businesses build and manage more business in that country,then that net capital outflow of that country

In an open economy,gross domestic product equals $1,950 billion,government expenditure equals $280 billion,investment equals $500,and net capital outflow equals $280 billion.What is consumption expenditure?

Suppose that purchases of Irish assets by foreigners exceed Irish purchase of foreign assets.Ireland has

In the U.S.a digital camera costs $150.The same camera in London sells for 60 pounds.If the exchange rate is .50 pounds per dollar,then which of the following is correct?

Perhaps the most dramatic change in the U.S.economy over the past four decades has been the increasing relative importance of international trade and finance.

If Thailand has a trade surplus,then

Suppose that the real exchange rate between the United States and Kenya is defined in terms of baskets of goods.Other things the same,which of the following will increase the real exchange rate?

Other things the same,which of the following would both make Americans more willing to buy Italian goods?

In which period was most of the change in U.S.net capital outflow due to an increase in investment in the U.S.?

If a dollar currently purchases 10 pesos and someone forecasts that in a year it will be 11 pesos,then the forecast is given in

A country has $50 million of domestic investment and net capital outflow of $15 million.What is saving?

One year a country has negative net exports.The next year it still has negative net exports and imports have risen more than exports.

If U.S.consumers increase their demand for apples from New Zealand,then other things the same New Zealand's

If the real exchange rate is less than 1,then the

When the Sykes Corporation (an American company)buys shares of Audi stock (a German company)for its pension fund,U.S.net capital outflow

Other things the same,a country could move from having a trade deficit to having a trade surplus if either

After 1980 in the United States,

Over the past five decades,the U.S.economy has become

A Big Mac in Japan costs 240 yen while it costs $3 in the U.S..The nominal exchange rate is 100 yen per dollar.Which of the following would both make the real exchange rate move towards purchasing-power parity?