Question 1

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

Accepted Answer

If Japan's Real GDP rises, it means that their economy is improving, which leads to an increase in the demand for goods and services. As a result, Japan is likely to import more from the United States. This increase in demand for US exports will shift the AD (Aggregate Demand) curve to the right, as there will be a higher demand for US goods and services. Therefore, the answer is A, which says that a rise in Japan's Real GDP tends to raise United States exports, shifting the United States AD curve to the right.

Question 2

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

Accepted Answer

As the dollar depreciates, the dollar price of imported goods rises, making them more expensive for US consumers. This ultimately shifts the United States AD curve leftward, as consumers will demand fewer imported goods at the higher prices.

Question 3

If Germany's Real GDP falls,this tends to ______________ United States exports,shifting the United States AD curve to the ________________.

Accepted Answer

When Germany's Real GDP falls, it means that the demand for goods and services produced by the United States may also fall as Germany is one of the United States' major trading partners. This fall in demand for US exports would shift the United States AD (aggregate demand) curve to the left, resulting in a lower level of GDP. Therefore, the best choice is D: lower; left.

Question 4

As the dollar depreciates,the foreign price of United States goods _________________,ultimately shifting the United States AD curve _____________.

Accepted Answer

When the dollar depreciates, U.S. goods become cheaper for foreign buyers, increasing demand for these goods and shifting the aggregate demand (AD) curve to the right.

Question 5

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

The answer of Suppose United States net exports are -$50...

Question 6

Suppose the price level in Germany rises,ceteris paribus.This ________________ United States net exports,ultimately shifting the United States AD curve ____________________.

Accepted Answer

The answer of Suppose the price level in Germany rises,ceteris...

Question 7

In the short run following a depreciation of the dollar,the United States may move downward along the J-curve since it is likely that the United States

Accepted Answer

A depreciation of the dollar means that the dollar is worth less compared to other currencies, making imports more expensive. In the short run, the United States may continue importing the same amount of goods, but at a higher cost due to the weaker dollar. This means that the United States will spend more dollars on imports, moving downward along the J-curve.

Question 8

As the dollar appreciates,the dollar price of imported goods ___________ ultimately shifting the United States AD curve to the _______________.

Accepted Answer

The answer of As the dollar appreciates,the dollar price of...

Question 9

A rise in net exports shifts the

Accepted Answer

A rise in net exports leads to an increase in aggregate demand (AD) as it represents an increase in spending on domestically produced goods and services by foreign consumers and firms. This shift in AD to the right is reflected by the upward movement of the AD curve.

Question 10

Suppose a British camera has a price of 200 British pounds.To a United States camera importer,its price rises from $360 to $380.This might happen when the dollar ________________ against the British pound,which means the British pound has a __________ dollar price.

Accepted Answer

When the dollar depreciates against the British pound, it means that more dollars are needed to buy the same amount of pounds, resulting in a higher dollar price for the British camera.

Question 11

If the United States goes into a recession,this tends to shift Japan's AD curve _______________ because Japan will ___________________.

Accepted Answer

If the United States goes into a recession, it will result in a decrease in U.S. demand for imports, including those from Japan, which will lead to a decrease in Japan's exports to the United States. As a result, Japan's AD curve will shift leftward due to a decrease in its exports to the U.S.

Question 12

Suppose the price level in Germany falls,ceteris paribus.This _________________ United States net exports,ultimately shifting the United States AD curve __________________.

Accepted Answer

A fall in the price level in Germany makes German goods cheaper relative to U.S. goods, leading to a decrease in U.S. net exports as more consumers buy German goods. This decrease in net exports shifts the U.S. aggregate demand (AD) curve leftward.

Question 13

Suppose we import only one good from Germany: cars.Initially,the exchange rate is $0.60 per euro.We import 150,000 cars annually,priced at 70,000 euros each.Then the euro rises to $0.625.Assuming the dollar value of our exports to Germany remains constant,we will stop moving down the J-curve and "turn the corner" to move upward along it once we import ______________ German cars per year.

Accepted Answer

The answer of Suppose we import only one good from...

Question 14

When the United States recovers from a recession,this tends to shift Germany's AD curve _________________,which _____________ Germany's price level.

Accepted Answer

When the United States recovers from a recession, its demand for imports, including those from Germany, increases. This increase in demand for German goods shifts Germany's aggregate demand (AD) curve to the right, which typically raises the price level in Germany.

Question 15

When the United States is moving downward along the J-curve,its trade balance is ______________ as an immediate after-effect of a____________________ of the dollar.

Accepted Answer

When the United States is moving downward along the J-curve, it means that in the short-term, the demand for US goods and services is inelastic, and the supply of foreign goods and services is also inelastic. Therefore, a depreciation of the dollar, which makes US goods cheaper and foreign goods more expensive, leads to an increase in demand for foreign goods and a decrease in demand for US goods. This leads to a worsening of the trade balance.

Question 16

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

Accepted Answer

If Japan's Real GDP falls, it means their demand for goods and services from other countries will also fall. This decrease in demand for goods and services will lead to a decrease in exports from the United States to Japan, resulting in a leftward shift of the AD curve.

Question 17

Suppose a case of French wine has a price of 1,500 euros.To a U.S.wine importer,its price falls from $300 to $280.This could happen as a result of the dollar ___________ against the euro,which means the euro has a ____________ dollar price.

Accepted Answer

The dollar appreciating against the euro means the dollar has gained value, so fewer dollars are needed to buy the same amount of euros, resulting in a lower dollar price for the wine.

Question 18

If an economy's exports are $560 billion and its net exports are -$130 billion,its imports are

Accepted Answer

Net exports are calculated by subtracting imports from exports.

Therefore, exports = net exports + imports.

Substituting the given values:

$560 billion = -$130 billion + imports

Imports = $560 billion + $130 billion

Imports = $690 billion

Thus, the correct answer is (A) $690 billion.

Question 19

As the dollar appreciates,the foreign price of United States goods ______________,ultimately shifting the United States AD curve ________________.

Accepted Answer

As the dollar appreciates, U.S. goods become more expensive for foreign buyers, reducing exports and shifting the aggregate demand (AD) curve leftward.

Question 20

If Germany's Real GDP rises,this tends to ________________ United States exports,shifting the United States AD curve to the ___________________.

Accepted Answer

If Germany's Real GDP rises, it means that Germany's purchasing power also increases, leading to an increase in demand for goods and services. This increase in demand tends to raise United States exports, shifting the United States AD curve to the right.

Quiz 23: International Finance

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

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

If Germany's Real GDP falls,this tends to United States exports,shifting the United States AD curve to the __.

As the dollar depreciates,the foreign price of United States goods _____,ultimately shifting the United States AD 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 _______.

Suppose the price level in Germany rises,ceteris paribus.This United States net exports,ultimately shifting the United States AD curve ____.

In the short run following a depreciation of the dollar,the United States may move downward along the J-curve since it is likely that the United States

As the dollar appreciates,the dollar price of imported goods _ ultimately shifting the United States AD curve to the _____.

A rise in net exports shifts the

Suppose a British camera has a price of 200 British pounds.To a United States camera importer,its price rises from $360 to $380.This might happen when the dollar ______ against the British pound,which means the British pound has a dollar price.

If the United States goes into a recession,this tends to shift Japan's AD curve _ because Japan will _____.

Suppose the price level in Germany falls,ceteris paribus.This _ United States net exports,ultimately shifting the United States AD curve __.

When the United States recovers from a recession,this tends to shift Germany's AD curve _____,which _ Germany's price level.

When the United States is moving downward along the J-curve,its trade balance is as an immediate after-effect of a______ of the dollar.

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

Suppose a case of French wine has a price of 1,500 euros.To a U.S.wine importer,its price falls from $300 to $280.This could happen as a result of the dollar _ against the euro,which means the euro has a __ dollar price.

If an economy's exports are $560 billion and its net exports are -$130 billion,its imports are

As the dollar appreciates,the foreign price of United States goods ,ultimately shifting the United States AD curve __.

If Germany's Real GDP rises,this tends to United States exports,shifting the United States AD curve to the ___.