Question 1

If Japan's Real GDP falls,this tends to _________________ United States exports,shifting the United States AD curve to the _____________________.

Accepted Answer

A) raise;right 
B) raise;left 
C) lower;right 
D) lower;left 
A) raise;right 
B) raise;left 
C) lower;right 
D) lower;left

Question 2

If an economy's exports are $600 billion and its imports are $750 billion,its net exports are

Accepted Answer

A) $1,550 billion 
B) $150 billion 
C) -$150 billion 
D) 1.07. 
A) $1,550 billion 
B) $150 billion 
C) -$150 billion 
D) 1.07.

Question 3

When the dollar depreciates,this shifts the AD curve rightward and the SRAS curve leftward,which will always lead to a higher Real GDP.

Accepted Answer

A) True 
 B)False

Question 4

Computers and the Internet make it possible for people to communicate with others over long distances,reducing the probability that people will trade with one another.

Accepted Answer

A) True 
 B)False

Question 5

A simultaneous rightward shift in SRAS and leftward shift in AD may come from the dollar _______________ in the aftermath of a ____________________ in United States real interest rates.

Accepted Answer

A) depreciating;rise 
B) depreciating;fall 
C) appreciating;rise 
D) appreciating;fall 
A) depreciating;rise 
B) depreciating;fall 
C) appreciating;rise 
D) appreciating;fall

Question 6

As the dollar depreciates,the dollar price of imported goods _________,ultimately shifting the United States AD curve __________________.

Accepted Answer

A) rises;rightward 
B) rises;leftward 
C) falls;rightward 
D) falls;leftward 
A) rises;rightward 
B) rises;leftward 
C) falls;rightward 
D) falls;leftward

Question 7

A depreciation in the dollar relative to the yen would make Japanese-produced input X more expensive for U.S.producers.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) tends to decrease domestic Real GDP. 
B) tends to increase domestic Real GDP. 
C) tends to have no impact on domestic Real GDP. 
D) has an indeterminable impact on domestic Real GDP given the above information. 
A) tends to decrease domestic Real GDP. 
B) tends to increase domestic Real GDP. 
C) tends to have no impact on domestic Real GDP. 
D) has an indeterminable impact on domestic Real GDP given the above information.

Question 9

If United States real interest rates rise,international repercussions put ____________ pressure on the price level and _______________ pressure on Real GDP in the United States.

Accepted Answer

A) upward;upward 
B) upward;downward 
C) downward;upward 
D) downward;downward 
A) upward;upward 
B) upward;downward 
C) downward;upward 
D) downward;downward

Question 10

Describe the impact of contractionary fiscal policy (such as a decrease in government spending)upon Real GDP in both a closed economy and an open economy.In which type of economy would the change in Real GDP be greater?

Accepted Answer

In a closed economy,contractionary fisca

Question 11

Higher real interest rates in the United States (relative to foreign real interest rates)will lead to a(n)_____________________ of the dollar,a ____________ shift of the U.S.AD curve and a _________________ shift of the U.S.SRAS curve.

Accepted Answer

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

Question 12

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

Accepted Answer

A) larger increase 
B) smaller increase 
C) larger decrease 
D) smaller decrease 
A) larger increase 
B) smaller increase 
C) larger decrease 
D) smaller decrease

Question 13

All economists agree that the worldwide benefits of globalization are likely to be greater than the worldwide costs.

Accepted Answer

A) True 
 B)False

Question 14

Suppose United States net exports are -$50 billion.Then the dollar depreciates.In the short run,the United States may move downward along the J-curve,with net exports _________ and the AD curve shifting to the _______________.

Accepted Answer

A) coming closer to zero;left 
B) coming closer to zero;right 
C) moving further from zero;left 
D) moving further from zero;right 
A) coming closer to zero;left 
B) coming closer to zero;right 
C) moving further from zero;left 
D) moving further from zero;right

Question 15

In recent years,the Chinese government has _____________ bonds issued by the U.S.government which has _____________ interest rates in the United States beyond what they would have been otherwise.

Accepted Answer

A) bought;lowered 
B) bought;raised 
C) sold;lowered 
D) sold;raised 
A) bought;lowered 
B) bought;raised 
C) sold;lowered 
D) sold;raised

Question 16

In a two-country world (consisting of country X and country Y),an increase in Real GDP in country X will shift country Y's AD curve leftward.

Accepted Answer

A) True 
 B)False

Question 17

In 2000,the top 100 transnational companies produced about _____________ percent of the entire world's output.

Accepted Answer

A) 2.1 
B) 4.3 
C) 10.5 
D) 22.1 
A) 2.1 
B) 4.3 
C) 10.5 
D) 22.1

Exam 23: International Finance

If Japan's Real GDP falls,this tends to _________________ United States exports,shifting the United States AD curve to the _____________________.

If an economy's exports are $600 billion and its imports are $750 billion,its net exports are

When the dollar depreciates,this shifts the AD curve rightward and the SRAS curve leftward,which will always lead to a higher Real GDP.

Computers and the Internet make it possible for people to communicate with others over long distances,reducing the probability that people will trade with one another.

A simultaneous rightward shift in SRAS and leftward shift in AD may come from the dollar _______________ in the aftermath of a ____________________ in United States real interest rates.

As the dollar depreciates,the dollar price of imported goods _________,ultimately shifting the United States AD curve __________________.

A depreciation in the dollar relative to the yen would make Japanese-produced input X more expensive for U.S.producers.

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

If United States real interest rates rise,international repercussions put ____________ pressure on the price level and _______________ pressure on Real GDP in the United States.

Describe the impact of contractionary fiscal policy (such as a decrease in government spending)upon Real GDP in both a closed economy and an open economy.In which type of economy would the change in Real GDP be greater?

Higher real interest rates in the United States (relative to foreign real interest rates)will lead to a(n)_____________________ of the dollar,a ____________ shift of the U.S.AD curve and a _________________ shift of the U.S.SRAS curve.

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

All economists agree that the worldwide benefits of globalization are likely to be greater than the worldwide costs.

Suppose United States net exports are -$50 billion.Then the dollar depreciates.In the short run,the United States may move downward along the J-curve,with net exports _________ and the AD curve shifting to the _______________.

In recent years,the Chinese government has _____________ bonds issued by the U.S.government which has _____________ interest rates in the United States beyond what they would have been otherwise.

In a two-country world (consisting of country X and country Y),an increase in Real GDP in country X will shift country Y's AD curve leftward.

In 2000,the top 100 transnational companies produced about _____________ percent of the entire world's output.

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

If Japan's Real GDP falls,this tends to _ United States exports,shifting the United States AD curve to the _____.

A simultaneous rightward shift in SRAS and leftward shift in AD may come from the dollar _ in the aftermath of a ______ in United States real interest rates.

As the dollar depreciates,the dollar price of imported goods _,ultimately shifting the United States AD curve __________.

If United States real interest rates rise,international repercussions put pressure on the price level and ___ pressure on Real GDP in the United States.

Higher real interest rates in the United States (relative to foreign real interest rates)will lead to a(n)_____ of the dollar,a shift of the U.S.AD curve and a _ shift of the U.S.SRAS curve.

Suppose United States net exports are -$50 billion.Then the dollar depreciates.In the short run,the United States may move downward along the J-curve,with net exports _ and the AD curve shifting to the _______.

In recent years,the Chinese government has _ bonds issued by the U.S.government which has _ interest rates in the United States beyond what they would have been otherwise.