Exam 19: Open-Economy Macroeconomics

Some countries have exchange rate policies that lie somewhere between fixed and floating exchange rates, such as rates that are managed by the government to avoid wide swings.

(True/False)

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Question 21

A revaluation of a currency, holding everything else constant:

(Multiple Choice)

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Question 22

Explain two purposes of devaluation and revaluation in a fixed exchange rate regime.

(Essay)

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Question 23

If a fixed currency is below its target exchange rate, the government will sell its own currency in foreign exchange markets.

(True/False)

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Question 24

Use the following to answer questions: Figure: International Capital Flows -(Figure: International Capital Flows) Look at the figure International Capital Flows. At an interest rate of 4%, the quantity of loanable funds supplied by U.S. lenders is _____ the quantity of loanable funds demanded by U.S. borrowers.

(Multiple Choice)

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Question 25

In the foreign exchange market, when the demand for the euro increases, the equilibrium U.S. dollar price of the euro _ and the U.S. dollar _.

(Multiple Choice)

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Question 26

When a Japanese investor buys stock in General Motors, the _____ account is affected.

(Multiple Choice)

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Question 27

The Cuban peso is on a fixed rate. If the government of Cuba uses foreign exchange controls to change the exchange rate of the peso from $1 to $1.20, the Cuban peso has been revalued.

(True/False)

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Question 28

The Canadian dollar is a floating currency. If the exchange rate for the Canadian dollar changes from US$0.95 to US$0.98, the Canadian dollar has appreciated.

(True/False)

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Question 29

Which of the following was an argument IN FAVOR of Britain's adopting the euro? I. Using the same currency as many other European countries would expand trade and increase productivity. II. Using the euro would increase the effectiveness of monetary policy.

(Multiple Choice)

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Question 30

Government purchases or sales of currency in the foreign exchange market constitute: I. a floating exchange rate regime. II. foreign exchange controls. III. exchange market intervention.

(Multiple Choice)

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Question 31

If the Chinese government wants to keep the real and nominal exchange rates between the yuan and the U.S. dollar fixed at 8 yuan per dollar without government intervention in the foreign exchange market, the _ rate in China must be _ that in the United States.

(Multiple Choice)

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Question 32

Use the following to answer questions : Scenario: Exchange Rates The value of a euro goes from US$1.25 to US$1.50. -(Scenario: Exchange Rates) Look at the scenario Exchange Rates. The dollar has:

(Multiple Choice)

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Question 33

Why did China buy $450 billion in foreign exchange reserves in 2010?

(Multiple Choice)

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Question 34

The euro was established in:

(Multiple Choice)

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Question 35

A devaluation will make exports _expensive and imports _ expensive.

(Multiple Choice)

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Question 36

According to the principle of purchasing power parity, the 2001 devaluation of the Argentine peso:

(Multiple Choice)

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Question 37

A devaluation can help reduce an inflationary gap.

(True/False)

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Question 38

After a revaluation, all other things equal, probably exports will increase and imports will decrease.

(True/False)

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Question 39

The behavior of the financial accounts is determined in the international _____ market.

(Multiple Choice)

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Question 40

Showing 21 - 40 of 467

Some countries have exchange rate policies that lie somewhere between fixed and floating exchange rates, such as rates that are managed by the government to avoid wide swings.

A revaluation of a currency, holding everything else constant:

Explain two purposes of devaluation and revaluation in a fixed exchange rate regime.

If a fixed currency is below its target exchange rate, the government will sell its own currency in foreign exchange markets.

In the foreign exchange market, when the demand for the euro increases, the equilibrium U.S. dollar price of the euro _ and the U.S. dollar _.

When a Japanese investor buys stock in General Motors, the _____ account is affected.

The Cuban peso is on a fixed rate. If the government of Cuba uses foreign exchange controls to change the exchange rate of the peso from $1 to $1.20, the Cuban peso has been revalued.

The Canadian dollar is a floating currency. If the exchange rate for the Canadian dollar changes from US$0.95 to US$0.98, the Canadian dollar has appreciated.

Which of the following was an argument IN FAVOR of Britain's adopting the euro? I. Using the same currency as many other European countries would expand trade and increase productivity. II. Using the euro would increase the effectiveness of monetary policy.

Government purchases or sales of currency in the foreign exchange market constitute: I. a floating exchange rate regime. II. foreign exchange controls. III. exchange market intervention.

If the Chinese government wants to keep the real and nominal exchange rates between the yuan and the U.S. dollar fixed at 8 yuan per dollar without government intervention in the foreign exchange market, the _ rate in China must be _ that in the United States.

Use the following to answer questions : Scenario: Exchange Rates The value of a euro goes from US$1.25 to US$1.50. -(Scenario: Exchange Rates) Look at the scenario Exchange Rates. The dollar has:

Why did China buy $450 billion in foreign exchange reserves in 2010?

The euro was established in:

A devaluation will make exports _expensive and imports _ expensive.

According to the principle of purchasing power parity, the 2001 devaluation of the Argentine peso:

A devaluation can help reduce an inflationary gap.

After a revaluation, all other things equal, probably exports will increase and imports will decrease.

The behavior of the financial accounts is determined in the international _____ market.

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Gdp and Cpi: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters

Exam 19: Open-Economy Macroeconomics

Some countries have exchange rate policies that lie somewhere between fixed and floating exchange rates, such as rates that are managed by the government to avoid wide swings.

A revaluation of a currency, holding everything else constant:

Explain two purposes of devaluation and revaluation in a fixed exchange rate regime.

If a fixed currency is below its target exchange rate, the government will sell its own currency in foreign exchange markets.

In the foreign exchange market, when the demand for the euro increases, the equilibrium U.S. dollar price of the euro _____ and the U.S. dollar _____.

When a Japanese investor buys stock in General Motors, the _____ account is affected.

The Cuban peso is on a fixed rate. If the government of Cuba uses foreign exchange controls to change the exchange rate of the peso from $1 to $1.20, the Cuban peso has been revalued.

The Canadian dollar is a floating currency. If the exchange rate for the Canadian dollar changes from US$0.95 to US$0.98, the Canadian dollar has appreciated.

Which of the following was an argument IN FAVOR of Britain's adopting the euro? I. Using the same currency as many other European countries would expand trade and increase productivity. II. Using the euro would increase the effectiveness of monetary policy.

Government purchases or sales of currency in the foreign exchange market constitute: I. a floating exchange rate regime. II. foreign exchange controls. III. exchange market intervention.

If the Chinese government wants to keep the real and nominal exchange rates between the yuan and the U.S. dollar fixed at 8 yuan per dollar without government intervention in the foreign exchange market, the _____ rate in China must be _____ that in the United States.

Use the following to answer questions : Scenario: Exchange Rates The value of a euro goes from US$1.25 to US$1.50. -(Scenario: Exchange Rates) Look at the scenario Exchange Rates. The dollar has:

Why did China buy $450 billion in foreign exchange reserves in 2010?

The euro was established in:

A devaluation will make exports _____expensive and imports _____ expensive.

According to the principle of purchasing power parity, the 2001 devaluation of the Argentine peso:

A devaluation can help reduce an inflationary gap.

After a revaluation, all other things equal, probably exports will increase and imports will decrease.

The behavior of the financial accounts is determined in the international _____ market.

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Gdp and Cpi: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters

In the foreign exchange market, when the demand for the euro increases, the equilibrium U.S. dollar price of the euro _ and the U.S. dollar _.

If the Chinese government wants to keep the real and nominal exchange rates between the yuan and the U.S. dollar fixed at 8 yuan per dollar without government intervention in the foreign exchange market, the _ rate in China must be _ that in the United States.

A devaluation will make exports _expensive and imports _ expensive.