Question 1

Other things the same,if the U.S.interest rate rises,U.S.assets become ____ attractive.So,desired net capital outflow _____.This change in net capital outflow,shifts the __________ curve in the market for foreign-currency exchange to the ______.

Accepted Answer

The answer of Other things the same,if the U.S.interest rate...

Question 2

If the exchange rate falls,domestic goods become relatively ______ expensive.This change in the affordability of domestic goods makes domestic goods _____ attractive to domestic residents.So,_______ ______.

Accepted Answer

The answer of If the exchange rate falls,domestic goods become...

Question 3

In the market for foreign-currency exchange,the source of the supply of dollars is _________.The supply curve is _________ because _____________.

Accepted Answer

The answer of In the market for foreign-currency exchange,the source...

Question 4

If the exchange rate rises,domestic goods become relatively ______ expensive.This change in the affordability of domestic goods makes domestic goods _____ attractive to foreigners.So,_______ ______.

Accepted Answer

The answer of If the exchange rate rises,domestic goods become...

Quiz 32: A Macroeconomic Theory of the Open Economy

Other things the same,if the U.S.interest rate rises,U.S.assets become __ attractive.So,desired net capital outflow _.This change in net capital outflow,shifts the __ curve in the market for foreign-currency exchange to the .

If the exchange rate falls,domestic goods become relatively ____ expensive.This change in the affordability of domestic goods makes domestic goods _ attractive to domestic residents.So,_ __.

In the market for foreign-currency exchange,the source of the supply of dollars is _____.The supply curve is _ because _________.

If the exchange rate rises,domestic goods become relatively ____ expensive.This change in the affordability of domestic goods makes domestic goods _ attractive to foreigners.So,_ __.