Economics Ps 10

18 Questions  I  By Blackcell_2020

  
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1.  When exports exceed imports, all of the following are true except:
A.
B.
C.
D.
2.  A country's exports may be written as equal to:
A.
B.
C.
D.
3.  An increase in the trade deficit of a small open economy could be the result of:
A.
B.
C.
D.
4.  Holding other factors constant, legislation to cut taxes in an open economy will:
A.
B.
C.
D.
5.  Starting from a small open economy with balanced trade, if large foreign countries increase their domestic government purchases, this policy will tend to increase:
A.
B.
C.
D.
6.  Starting from trade balance, if the world interest rate falls, then, holding other factors constant, in a small, open economy the amount of domestic investment will _____ and net exports will _____.
A.
B.
C.
D.
7.  The adoption of an investment tax credit in a small open economy is likely to lead to:
A.
B.
C.
D.
8.  If the real exchange rate decreases, then net exports will _____.
A.
B.
C.
D.
9.  In a small open economy, when the government reduces national saving, the equilibrium real exchange rate:
A.
B.
C.
D.
10.  In a small open economy with perfect capital mobility, a reduction in the government's budget deficit ______ net exports and the real exchange rate ______.
A.
B.
C.
D.
11.  In a small open economy, when foreign governments reduce national saving in their countries, the equilibrium real exchange rate:
A.
B.
C.
D.
12.  In a small, open economy, if the world interest rate falls, then domestic investment will _____ and the real exchange rate will _____, holding all else constant.
A.
B.
C.
D.
13.  In a small, open economy, if the world interest rate increases, then the supply of domestic currency on the foreign exchange market will _____ and the real exchange rate will _____, holding all else constant.
A.
B.
C.
D.
14.  Use the following to answer questions 23-27: (Exhibit: Policies Influence Real Exchange Rate) Which of the graphs illustrates the impact on the real exchange rate of contractionary fiscal policies abroad?
A.
B.
C.
D.
15.  Use the following to answer questions 23-27: (Exhibit: Policies Influence Real Exchange Rate) Which of the graphs illustrates the impact on the real exchange rate of an increase in investment demand?
A.
B.
C.
D.
16.  Use the following to answer questions 23-27: (Exhibit: Policies Influence Real Exchange Rate) Which of the graphs illustrates the impact on the real exchange rate of protectionist trade policies?
A.
B.
C.
D.
17.  The currencies of countries with high inflation rates relative to the United States have tended to ______, and the currencies of countries with low inflation rates relative to the United States have tended to ______.
A.
B.
C.
D.
18.  In a small open economy, if consumer confidence falls and consumers decide to save more, then the real exchange rate:
A.
B.
C.
D.
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