Exam 23: International Finance

In the early 1900s tariffs accounted for ____________ of all federal government revenues,whereas today they account for less than ____________ percent.

Capitalism is the economic system that best describes what is currently happening in the world economy.

A rise in net exports shifts the

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

The consumer price index (CPI)increased at a slower rate during the period 1990-2004 than the import price index.

Starting with an exchange rate of $1 = ¥110,and a price tag of ¥5,000 for a Japanese good,what happens to the dollar price of the good if the yen depreciates by 4 percent?

Suppose Japanese real interest rates fall.Typically,we should expect a ____________ shift of the U.S.AD curve with a ___________________ shift in United States real interest rates.

When the United States recovers from a recession,this tends to shift Germany's AD curve _________________,which _____________ Germany's price level.

A depreciation of the U.S.dollar in the foreign exchange market lowers U.S.Real GDP when the _____________ shift of the SRAS curve exceeds the __________ shift of the AD curve.

An appreciation of the dollar in the foreign exchange market raises United States Real GDP when the _____________ shift of the SRAS curve exceeds the __________ shift of the AD curve.

Globalization first appeared on the world stage two decades ago.

Starting with an exchange rate of $1 = ¥110,and a price tag of ¥30,000 for a Japanese good,what happens to the dollar price of the good if the yen appreciates by 6 percent?

Economist David Friedman has compared free international trade to

The problems of physical distance can be _____________ by technology which can serve to ___________ trade.

As the dollar appreciates,the dollar price of imported goods ___________ ultimately shifting the United States AD curve to the _______________.

Contractionary fiscal policy _______________ Real GDP ______________ in an open economy than in a closed economy.

Suppose the dollar appreciates in the foreign exchange markets.What is the impact on U.S.Real GDP?

In the short run following a depreciation of the dollar,the United States may move downward along the J-curve since it is likely that the United States

Economists are fairly confident that globalization leads to a(n)_____________ standard of living based on their comparisons of countries with __________________ characteristics.

When the dollar appreciates,this shifts the AD curve leftward and the SRAS curve rightward,which will typically lead to an unchanged Real GDP.