Exam 31: Open-Economy Macroeconomics: Basic Concepts

If purchasing power parity holds,a bushel of rice costs $10 in the U.S. ,and the nominal exchange rate is 2 Thai bhat per dollar,what is the price of rice in Thailand?

The nominal exchange rate is .80 euros per U.S.dollar and a basket of goods in France costs 1,000 euros while the same basket costs $800 in the U.S.The nominal exchange rate is 1.2 Australian dollars per U.S.dollar and a basket of goods in Australia costs 960 Australian dollars while the same basket costs $800 in the U.S..Which country has purchasing-power parity with the U.S.?

If a country has a trade surplus,then its

Which of the following statements is incorrect for an open economy?

Suppose that the real exchange rate between the United States and Vietnam is defined in terms of baskets of goods.Other things the same,which of the following will increase the real exchange rate (that is increase the number of baskets of Vietnamese goods a basket of U.S.goods buys)?

If a bushel of wheat costs $6.40 in the United States and costs 40 pesos in Mexico and the nominal exchange rate is 10 pesos per dollar,then the real exchange rate is

When a country's central bank increases the money supply,its

Other things the same,if the dollar depreciates relative to the British pound,then

When Claudia,a U.S.citizen,purchases a handbag made in France,the purchase is

The value of Peru's exports minus the value of Peru's imports is called

Which of the following could be a consequence of a depreciation of the U.S.real exchange rate?

If the exchange rate is 7 Moroccan dirhams per U.S.dollars,a crate of oranges costs 280 dirhams in the Moroccan capital of Rabat,and a similar crate of oranges in Miami sells for $45 dollars,then

An appreciation of the U.S.real exchange rate induces U.S.consumers to buy

Net capital outflow measures

Paine Pharmaceuticals produces medicines in the U.S.Its overseas sales

Bob traps lobsters in Maine and sells them to a restaurant in Egypt.Other things the same,these sales

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

All saving in the U.S.economy shows up as

According to purchasing power parity,if it took 1,100 Korean Won to buy a dollar this year,but it took 1,000 to buy it last year,then the dollar has

A Japanese firm buys lumber from the United States and pays for it with yen.Other things the same,Japanese