Exam 23: International Finance

International trade (a key component of globalization)has been linked to lower prices in numerous studies.

The J-curve summarizes the phenomenon that occurs when import spending initially falls after a depreciation of a country's currency and then import spending later rises.

The end of the Cold War is generally marked by the fall of the Berlin Wall in

Suppose the price level in Germany rises,ceteris paribus.This ________________ United States net exports,ultimately shifting the United States AD curve ____________________.

The Cold War

An expansionary monetary policy causes interest rates to _____________________,and eventually United States net exports ____________ causing the AD curve to shift to the ___________________.

If the dollar appreciates and the U.S.AD curve shifts _______________ by an amount less than the U.S.SRAS curve shifts __________________,then Real GDP will _________________________.

When real interest rates fall in the United States relative to interest rates in Japan,the yen appreciates and the dollar depreciates.

Which of the following statements is false?

As the dollar depreciates,the foreign price of United States goods _________________,ultimately shifting the United States AD curve _____________.

Can a change in the Japanese price level cause the United States to move downward along its J-curve?

According to J-curve theory,imports initially increase after a country's currency depreciates,but in the long run imports decrease.

If Germany's Real GDP falls,this tends to ______________ United States exports,shifting the United States AD curve to the ________________.

North Korea has ____________ the process of globalization,while South Korea has _______________ it.A likely result of this is that South Koreans have a much ______________ standard of living than North Koreans.

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

Studies have shown that tipping is much less common in countries where caring and personal relationships are highly valued,as opposed to the values of success and materialism.

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

Between 1990 and 2003,college tuition went up 130 percent,which is __________ the increase in the prices of housing,gasoline,and medical care.

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

When the dollar depreciates,this shifts the AD curve rightward and the SRAS curve leftward,leading to a higher price level.