Exam 23: International Finance

If the dollar appreciates and the U.S.AD curve shifts leftward by an amount greater than the U.S.SRAS curve shifts rightward,then Real GDP will _____________________ and the price level will _____________________.

With an increase in the budget deficit,the open-economy outcome compared to the closed-economy outcome features a ___________ in Real GDP.

International feedback effects ________________ the impact on the unemployment rate of __________________ monetary policy.

Expansionary fiscal policy

Describe at least three forces in the world which could change to push the world in the direction of antiglobalization.

Increased deficit financing,following the use of expansionary fiscal policy by the U.S. ,will raise U.S.interest rates and causes the dollar to appreciate.

When World War II ended,the new era of globalization began.

Suppose the supply of Malaysian rubber decreases.If U.S.producers purchase this rubber as an input,in the United States,this would cause a

Which of the following statements is false?

In economics,the term foreign exchange trading means

Globalization is necessarily bad for U.S.workers.

Which of the following is not a result of a higher federal budget deficit?

Expansionary monetary policy _______________ Real GDP ______________ in an open economy than in a closed economy.

Suppose a British camera has a price of 200 British pounds.To a United States camera importer,its price rises from $360 to $380.This might happen when the dollar ________________ against the British pound,which means the British pound has a __________ dollar price.

_______________ is the practice of hiring people in other countries to do a job that was once done domestically.

Which of the following will lead to a rightward shift in the U.S.SRAS curve?

With globalization,the world is moving from hundreds of national economies toward one large world economy.

Net exports represent the difference between exports and imports.

Between 1977 and 2004,the inflation-adjusted prices for an array of goods traded between countries __________ while the inflation-adjusted prices for an array of goods not traded between countries _____________________.

Fifteen years ago,China _________________ with the countries of Europe.Today,China ______________________ most European countries.