Question 1

Describe three factors that have led to the recent push toward globalization.

Accepted Answer

The three factors cited in the text for

Question 2

In recent years,tariff rates have declined in the United States,China,and India.

Accepted Answer

A) True 
 B)False

Question 3

In a two-country world consisting of Japan and the United States,a contraction in the Japanese economy will lead to lower Real GDP in the United States.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) a higher real interest rate 
B) a depreciation of the currency 
C) a rise in exports 
D) a rise in the price of foreign inputs 
A) a higher real interest rate 
B) a depreciation of the currency 
C) a rise in exports 
D) a rise in the price of foreign inputs

Question 5

In a two-country world,an increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy)shifts

Accepted Answer

A) the domestic AD curve leftward and the domestic SRAS curve rightward. 
B) the domestic AD curve rightward and the domestic SRAS curve leftward. 
C) both the domestic AD curve and the domestic SRAS curve rightward. 
D) both the domestic AD curve and the domestic SRAS curve leftward. 
E) the domestic AD curve leftward and does not affect the domestic SRAS curve. 
A) the domestic AD curve leftward and the domestic SRAS curve rightward. 
B) the domestic AD curve rightward and the domestic SRAS curve leftward. 
C) both the domestic AD curve and the domestic SRAS curve rightward. 
D) both the domestic AD curve and the domestic SRAS curve leftward. 
E) the domestic AD curve leftward and does not affect the domestic SRAS curve.

Question 6

Harvard University admits a larger percentage of applicants than does India's Indian Institute of Technology.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following factors are repeated in many different definitions of globalization?

Accepted Answer

A) creation of a smaller world 
B) movement toward a world economy 
C) people living across the world from one another having a greater impact upon each other 
D) all of the above 
A) creation of a smaller world 
B) movement toward a world economy 
C) people living across the world from one another having a greater impact upon each other 
D) all of the above

Question 8

Suppose we import only one good from Germany: cars.Initially,the exchange rate is $0.60 per euro.We import 150,000 cars annually,priced at 70,000 euros each.Then the euro rises to $0.625.Assuming the dollar value of our exports to Germany remains constant,we will stop moving down the J-curve and "turn the corner" to move upward along it once we import ______________ German cars per year.

Accepted Answer

A) fewer than 150,000 
B) fewer than 144,000 
C) fewer than 93,750 
D) more than 150,000 
E) more than 156,250 
A) fewer than 150,000 
B) fewer than 144,000 
C) fewer than 93,750 
D) more than 150,000 
E) more than 156,250

Question 9

Which of the following is a general rule of business etiquette in the given city?

Accepted Answer

A) Beijing,China: If someone offers you his or her business car,accept it with both hands,read it immediately,and then present your business card to the person. 
B) Hong Kong,China: It is considered impolite to run out of business cards. 
C) Sydney,Australia: It is important to know about the latest sports matches. 
D) Berlin,Germany: When out with German business associates,try not to talk about sports. 
E) All of the above are examples of proper business etiquette around the world. 
A) Beijing,China: If someone offers you his or her business car,accept it with both hands,read it immediately,and then present your business card to the person. 
B) Hong Kong,China: It is considered impolite to run out of business cards. 
C) Sydney,Australia: It is important to know about the latest sports matches. 
D) Berlin,Germany: When out with German business associates,try not to talk about sports. 
E) All of the above are examples of proper business etiquette around the world.

Question 10

Globalization

Accepted Answer

A) is the growing integration of the national economies of the world to such an extent that a single worldwide economy may be emerging. 
B) is any type of foreign trade. 
C) is specifically foreign trade between countries that have entered into a formal free trade agreement. 
D) will necessarily lead to higher unemployment rates in the United States. 
A) is the growing integration of the national economies of the world to such an extent that a single worldwide economy may be emerging. 
B) is any type of foreign trade. 
C) is specifically foreign trade between countries that have entered into a formal free trade agreement. 
D) will necessarily lead to higher unemployment rates in the United States.

Question 11

In a two-country world,the appreciation of the domestic currency shifts

Accepted Answer

A) the AD curve rightward and the SRAS curve leftward. 
B) the AD curve leftward and the SRAS curve rightward. 
C) both the AD curve and the SRAS curve rightward. 
D) both the AD curve and the SRAS curve leftward. 
E) the AD curve rightward and does not affect the SRAS curve. 
A) the AD curve rightward and the SRAS curve leftward. 
B) the AD curve leftward and the SRAS curve rightward. 
C) both the AD curve and the SRAS curve rightward. 
D) both the AD curve and the SRAS curve leftward. 
E) the AD curve rightward and does not affect the SRAS curve.

Question 12

Everyone agrees that globalization causes greater income inequality between rich and poor countries.

Accepted Answer

A) True 
 B)False

Question 13

Lower real interest rates in the United States (relative to foreign real interest rates)will lead to a(n)________________ of the dollar and a ______________ shift of the U.S.SRAS curve.

Accepted Answer

A) appreciation;rightward 
B) appreciation;leftward 
C) depreciation;rightward 
D) depreciation;leftward 
A) appreciation;rightward 
B) appreciation;leftward 
C) depreciation;rightward 
D) depreciation;leftward

Question 14

Many economists argue that higher real interest rates in the United States (relative to foreign real interest rates)will lead to a(n)________________ of the dollar and subsequent shifts in the U.S.AD curve and SRAS curve such that Real GDP will ___________________.

Accepted Answer

A) depreciation;increase 
B) depreciation;decrease 
C) appreciation;increase 
D) appreciation;decrease 
A) depreciation;increase 
B) depreciation;decrease 
C) appreciation;increase 
D) appreciation;decrease

Question 15

A decrease in U.S.real interest rates causes the dollar to _________________,which tends to __________________ U.S.Real GDP.

Accepted Answer

A) appreciate;raise 
B) appreciate;lower 
C) depreciate;raise 
D) depreciate;lower 
A) appreciate;raise 
B) appreciate;lower 
C) depreciate;raise 
D) depreciate;lower

Question 16

In recent years,the Chinese government's actions have had an impact on interest rates in the United States.

Accepted Answer

A) True 
 B)False

Question 17

Assuming that the increase in the value of the dollar in the foreign exchange market has a greater impact on aggregate demand than on aggregate supply,an increase in the United States budget deficit will raise Real GDP

Accepted Answer

A) more in an open economy than in a closed economy. 
B) more in a closed economy than in an open economy. 
C) to the same level irrespective of whether it is a closed or an open economy. 
D) none of the above (i.e.Real GDP will decrease) 
A) more in an open economy than in a closed economy. 
B) more in a closed economy than in an open economy. 
C) to the same level irrespective of whether it is a closed or an open economy. 
D) none of the above (i.e.Real GDP will decrease)

Question 18

If the dollar depreciates,the U.S.AD curve shifts _______________,the U.S.SRAS curve shifts __________________,and the price level will _________________________.

Accepted Answer

A) rightward;leftward;increase 
B) rightward;leftward;decrease 
C) leftward;rightward;increase 
D) leftward;rightward;decrease 
A) rightward;leftward;increase 
B) rightward;leftward;decrease 
C) leftward;rightward;increase 
D) leftward;rightward;decrease

Question 19

List and describe two costs and two benefits of globalization as discussed in the textbook.Why does it tend to be more difficult to see the benefits of globalization as compared to the costs of globalization?

Accepted Answer

Some of the benefits of globalization in

Question 20

A depreciation of the dollar relative to another currency will raise U.S.exports,lower U.S.imports,and raise U.S.net exports.

Accepted Answer

A) True 
 B)False

Exam 23: International Finance

Describe three factors that have led to the recent push toward globalization.

In recent years,tariff rates have declined in the United States,China,and India.

In a two-country world consisting of Japan and the United States,a contraction in the Japanese economy will lead to lower Real GDP in the United States.

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

In a two-country world,an increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy)shifts

Harvard University admits a larger percentage of applicants than does India's Indian Institute of Technology.

Which of the following factors are repeated in many different definitions of globalization?

Which of the following is a general rule of business etiquette in the given city?

Globalization

In a two-country world,the appreciation of the domestic currency shifts

Everyone agrees that globalization causes greater income inequality between rich and poor countries.

Lower real interest rates in the United States (relative to foreign real interest rates)will lead to a(n)________________ of the dollar and a ______________ shift of the U.S.SRAS curve.

Many economists argue that higher real interest rates in the United States (relative to foreign real interest rates)will lead to a(n)________________ of the dollar and subsequent shifts in the U.S.AD curve and SRAS curve such that Real GDP will ___________________.

A decrease in U.S.real interest rates causes the dollar to _________________,which tends to __________________ U.S.Real GDP.

In recent years,the Chinese government's actions have had an impact on interest rates in the United States.

Assuming that the increase in the value of the dollar in the foreign exchange market has a greater impact on aggregate demand than on aggregate supply,an increase in the United States budget deficit will raise Real GDP

If the dollar depreciates,the U.S.AD curve shifts _______________,the U.S.SRAS curve shifts __________________,and the price level will _________________________.

List and describe two costs and two benefits of globalization as discussed in the textbook.Why does it tend to be more difficult to see the benefits of globalization as compared to the costs of globalization?

A depreciation of the dollar relative to another currency will raise U.S.exports,lower U.S.imports,and raise U.S.net exports.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, controlled, and Relative

Supply,demand,and Price: Applications

Macroeconomic Measurements, part I: Prices and Unemployment

Macroeconomic Measurements, part II: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self-Regulating Economy

Keynesian Macroeconomics and Economic Instability: a Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money,banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, technology, ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

Globalization and International Impacts on the Economy

The Economic Case for and Against Government: Five Topics Considered

Stocks, bonds, futures, and Options

Filters

Lower real interest rates in the United States (relative to foreign real interest rates)will lead to a(n)__ of the dollar and a shift of the U.S.SRAS curve.

Many economists argue that higher real interest rates in the United States (relative to foreign real interest rates)will lead to a(n) of the dollar and subsequent shifts in the U.S.AD curve and SRAS curve such that Real GDP will ___.

A decrease in U.S.real interest rates causes the dollar to _,which tends to __ U.S.Real GDP.

If the dollar depreciates,the U.S.AD curve shifts _,the U.S.SRAS curve shifts ,and the price level will _____________.