Global Economy Quizzes & Trivia

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Global Economy Questions and Answers

  • There are several methodologies to measure GDP. If you compare two of them: the product and expenditures methodologies, they should provide you with the same estimate of GDP...
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  • An expected decrease in future income will tend to lead to
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  • Assume that investment opportunities at any given interest rate are the same in Japan and in the US. The nominal interest rate in Japan is 0.8%, in the US it is 0%. Inflation in the US is 3% and in Japan inflation is -1.5% (there is deflation in Japan). Based on this information, where would you expect more investment?
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  • For the United States, the volume of international trade has been increasing relatively, but not absolutely.

  • The US economys share of world trade has decreased since 1947.

  • The US exports and imports goods and services with a dollar value greater than any other nation in the world.

  • Domestic business refers to business activities needed fro creating, shipping, and selling goods across national borders.

  • Without foreign trade, many things you buy would cost more or not be available.

  • If a country exports more than it imports , it has  a trade surplus.

  • Most trading on exchange rate markets is related to _______________ and ______________.
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  • A high inflation rate means that your currency buys less.
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  • There are two main ways to deal with floating exchange rate risks. What are they? (Select two)
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