Question 1

Refer to Budget Reform. What does this policy change do to net capital outflows? Defend your answer.

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Question 2

What happens to each of the following if the supply of loanable funds shifts right?
a. the interest rate
b. net capital outflow
c. the exchange rate

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The answer of What happens to each of the following...

Question 3

Refer to Budget in Recession. What does this change in the deficit do to net capital outflows? Defend your answer.

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Question 4

Refer to Budget Reform. What does this policy change do to the equilibrium values of the interest rate and the quantity of loanable funds?

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The answer of Refer to Budget Reform. What does this...

Question 5

Refer to Budget in Recession. This change in the deficit causes net capital outflow to change. How is this change in net capital outflow shown in the market for foreign-currency exchange? What happens to the exchange rate?

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The answer of Refer to Budget in Recession. This change...

Question 6

Refer to Budget in Recession. In the market for loanable funds which curve(s) does this change in the deficit shift? Which direction does it shift?

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Question 7

If a country's government moves from a budget deficit to a budget surplus, which curve in the market for loanable funds shifts and which direction does it shift? What happens to the interest rate?

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Question 8

Refer to Budget Reform. In the market for loanable funds which curve(s) does this policy change shift? Which direction does it shift?

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Question 9

Refer to Budget Reform. This policy change causes the exchange rate to change. What does the change in the exchange rate to do to net exports?

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Question 10

Refer to Shoe Quota. What is a quota? What is a tariff?

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Question 11

What happens to each of the following if the supply of loanable funds shifts left?
a. the interest rate
b. net capital outflow
c. the exchange rate

Accepted Answer

The answer of What happens to each of the following...

Question 12

Refer to Budget Reform. This policy change causes net capital outflow to change. How is this change in net capital outflow shown in the market for foreign-currency exchange? What happens to the exchange rate?

Accepted Answer

The answer of Refer to Budget Reform. This policy change...

Question 13

What happens to each of the following if investment becomes less desirable at each interest rate?
a. the interest rate
b. net capital outflow
c. the exchange rate

Accepted Answer

The answer of What happens to each of the following...

Question 14

If the government budget deficit rises, what happens to the interest rate? What does this change in the interest rate do to net capital outflow? Provide a detailed explanation of why this change in the interest rate changes net capital outflow.

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The answer of If the government budget deficit rises, what...

Question 15

Other things the same, which curve in the market for foreign-currency exchange shifts and which direction does it shift if net capital outflow rises?

Accepted Answer

The answer of Other things the same, which curve in...

Question 16

What happens to each of the following if investment becomes more desirable at each interest rate?
a. the interest rate
b. net capital outflow
c. the exchange rate

Accepted Answer

The answer of What happens to each of the following...

Question 17

Refer to Budget in Recession. This change in the deficit causes the exchange rate to change. What does the change in the exchange rate do to net exports?

Accepted Answer

The answer of Refer to Budget in Recession. This change...

Question 18

Refer to Budget in Recession. What does this change in the budget deficit do to the equilibrium values of the interest rate and the quantity of loanable funds?

Accepted Answer

The answer of Refer to Budget in Recession. What does...

Question 19

If for some reason U.S. residents increase their purchases of foreign assets, then all else constant which curve in the market for foreign-currency exchange shifts and which direction does it shift? What happens to the exchange rate?

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The answer of If for some reason U.S. residents increase...

Question 20

Which curve in the market for foreign-currency exchange shifts and which direction does it shift if the government budget deficit increases? Explain why an increase in the budget deficit shifts this curve.

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The answer of Which curve in the market for foreign-currency...

Quiz 32: A Macroeconomic Theory of the Open Economy

Refer to Budget Reform. What does this policy change do to net capital outflows? Defend your answer.

What happens to each of the following if the supply of loanable funds shifts right? a. the interest rate b. net capital outflow c. the exchange rate

Refer to Budget in Recession. What does this change in the deficit do to net capital outflows? Defend your answer.

Refer to Budget Reform. What does this policy change do to the equilibrium values of the interest rate and the quantity of loanable funds?

Refer to Budget in Recession. This change in the deficit causes net capital outflow to change. How is this change in net capital outflow shown in the market for foreign-currency exchange? What happens to the exchange rate?

Refer to Budget in Recession. In the market for loanable funds which curve(s) does this change in the deficit shift? Which direction does it shift?

If a country's government moves from a budget deficit to a budget surplus, which curve in the market for loanable funds shifts and which direction does it shift? What happens to the interest rate?

Refer to Budget Reform. In the market for loanable funds which curve(s) does this policy change shift? Which direction does it shift?

Refer to Budget Reform. This policy change causes the exchange rate to change. What does the change in the exchange rate to do to net exports?

Refer to Shoe Quota. What is a quota? What is a tariff?

What happens to each of the following if the supply of loanable funds shifts left? a. the interest rate b. net capital outflow c. the exchange rate

Refer to Budget Reform. This policy change causes net capital outflow to change. How is this change in net capital outflow shown in the market for foreign-currency exchange? What happens to the exchange rate?

What happens to each of the following if investment becomes less desirable at each interest rate? a. the interest rate b. net capital outflow c. the exchange rate

If the government budget deficit rises, what happens to the interest rate? What does this change in the interest rate do to net capital outflow? Provide a detailed explanation of why this change in the interest rate changes net capital outflow.

Other things the same, which curve in the market for foreign-currency exchange shifts and which direction does it shift if net capital outflow rises?

What happens to each of the following if investment becomes more desirable at each interest rate? a. the interest rate b. net capital outflow c. the exchange rate

Refer to Budget in Recession. This change in the deficit causes the exchange rate to change. What does the change in the exchange rate do to net exports?

Refer to Budget in Recession. What does this change in the budget deficit do to the equilibrium values of the interest rate and the quantity of loanable funds?

If for some reason U.S. residents increase their purchases of foreign assets, then all else constant which curve in the market for foreign-currency exchange shifts and which direction does it shift? What happens to the exchange rate?

Which curve in the market for foreign-currency exchange shifts and which direction does it shift if the government budget deficit increases? Explain why an increase in the budget deficit shifts this curve.