Exam 29: Macroeconomics in an Open Economy

If the balance on the current account is $842 billion and the balance on the financial account is -$603 billion, what is the balance on the capital account, assuming no statistical discrepancy?

If net exports are equal to net foreign investment,

When Americans increase their demand for Japanese goods,

In recent decades the United States has incurred overall balance of payments deficits.

National saving equals

The United States usually exports ________ goods than it imports and exports ________ services than it imports.

The federal budget deficit and the trade balance are often referred to as the

Assuming the United States is the "domestic" country, if the real exchange rate between the United States and France increases from 1.5 to 1.8,

If the exchange rate between the Mexican peso and the U.S. dollar expressed in terms of pesos per dollar is 13.5 pesos = 1 dollar, what is the exchange rate when expresses in terms of dollars per peso?

If national saving decreases,

A decrease in capital outflows from the United States will

If the Fed pursues an expansionary monetary policy, investment in the United States will ________ and net exports will ________.

The current account does not include which of the following?

The current account includes records of a country's

Which of the following would increase the current account balance of the United States?

When net capital flows are negative,

In 2012, global profits for McDonald's increased by 6.3 percent when measured in local currencies, but fell by 0.7 percent when measured in dollars. The reason for this discrepancy is the value of the

Holding all else constant, an economic expansion in Mexico should decrease the demand for U.S. dollars.

Suppose that Federal Reserve policy leads to higher interest rates in the United States. How will this policy affect real GDP in the short run if the United States is a closed economy, and how will it affect real GDP in the short run if the United States is an open economy?

Suppose China decides to sell a vast majority of their large holdings of U.S. Treasury bonds. If you are thinking of refinancing your house, how would China's action affect your decision to refinance?