Question 1

Refer to Depositors Move Funds Out of Greek Banks. Because of depositors reactions what happened to net capital outflow?

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The answer of Refer to Depositors Move Funds Out of...

Question 2

Refer to Depositors Move Funds Out of Greek Banks. What happened to domestic investment? Why?

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The answer of Refer to Depositors Move Funds Out of...

Question 3

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 4

Refer to U.S. Investment Tax Credit. What happens to the interest rate, U.S. net capital outflow, and the net capital outflow of foreign countries?

Accepted Answer

The answer of Refer to U.S. Investment Tax Credit. What...

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?

Accepted Answer

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

Question 6

Refer to Shoe Quota. Overall as a result of this change in policy, what happens to exports, imports, and net exports?

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The answer of Refer to Shoe Quota. Overall as a...

Question 7

Refer to U.S. Investment Tax Credit. In the market for loanable funds which curve shifts and which direction does it shift?

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The answer of Refer to U.S. Investment Tax Credit. In...

Question 8

Refer to Shoe Quota. At a given exchange rate what does a quota do to desired net exports? As a result of this change which curve in the open-economy model shifts and which direction does it shift?

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The answer of Refer to Shoe Quota. At a given...

Question 9

Political events convince people that the assets of country x are now riskier. As a result of this change which curves in the open-economy macroeconomic model shift and which direction do they shift for country x?

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The answer of Political events convince people that the assets...

Question 10

Refer to Shoe Quota. As a result of the quota, is there initially a surplus or a shortage in the market for foreign- currency exchange? Carefully explain how people's response to this surplus or shortage and the resulting changes in their behavior leads to a new equilibrium exchange rate.

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The answer of Refer to Shoe Quota. As a result...

Question 11

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

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The answer of Refer to Shoe Quota. What is a...

Question 12

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

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The answer of Refer to Budget Reform. In the market...

Question 13

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 14

Refer to Depositors Move Funds Out of Greek Banks. What happened to the domestic equilibrium interest rate and quantity of loanable funds supplied?

Accepted Answer

The answer of Refer to Depositors Move Funds Out of...

Question 15

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?

Accepted Answer

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

Question 16

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 17

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 18

If a country makes political reforms so that people now believe this country's assets are less risky, what happens to its interest rate, its exchange rate, and its net exports?

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The answer of If a country makes political reforms so...

Question 19

Refer to Depositors Move Funds Out of Greek Banks. Which curve in the domestic loanable funds market shifted and which direction did it shift?

Accepted Answer

The answer of Refer to Depositors Move Funds Out of...

Question 20

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

Accepted Answer

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

Quiz 19: A Macroeconomic Theory of the Open Economy

Refer to Depositors Move Funds Out of Greek Banks. Because of depositors reactions what happened to net capital outflow?

Refer to Depositors Move Funds Out of Greek Banks. What happened to domestic investment? Why?

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 U.S. Investment Tax Credit. What happens to the interest rate, U.S. net capital outflow, and the net capital outflow of foreign countries?

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 Shoe Quota. Overall as a result of this change in policy, what happens to exports, imports, and net exports?

Refer to U.S. Investment Tax Credit. In the market for loanable funds which curve shifts and which direction does it shift?

Refer to Shoe Quota. At a given exchange rate what does a quota do to desired net exports? As a result of this change which curve in the open-economy model shifts and which direction does it shift?

Political events convince people that the assets of country x are now riskier. As a result of this change which curves in the open-economy macroeconomic model shift and which direction do they shift for country x?

Refer to Shoe Quota. As a result of the quota, is there initially a surplus or a shortage in the market for foreign- currency exchange? Carefully explain how people's response to this surplus or shortage and the resulting changes in their behavior leads to a new equilibrium exchange rate.

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

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

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?

Refer to Depositors Move Funds Out of Greek Banks. What happened to the domestic equilibrium interest rate and quantity of loanable funds supplied?

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 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 deficit do to net capital outflows? Defend your answer.

If a country makes political reforms so that people now believe this country's assets are less risky, what happens to its interest rate, its exchange rate, and its net exports?

Refer to Depositors Move Funds Out of Greek Banks. Which curve in the domestic loanable funds market shifted and which direction did it shift?

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