Question 1

Which of the following is not an affect of a lower federal government budget deficit?

Accepted Answer

The answer of Which of the following is not an...

Question 2

If the United States buys inputs from France and the dollar appreciates relative to the euro,then Americans will have to pay ________________ for foreign inputs,and the U.S.SRAS curve will shift __________________.

Accepted Answer

If the dollar appreciates relative to the euro, then Americans will have to pay less for foreign inputs because their currency now has more purchasing power. As a result, the U.S. SRAS curve will shift rightward because firms will be able to produce more goods and services at every price level due to the availability of cheaper inputs.

Question 3

If U.S.real interest rates fall,international repercussions put _________________ pressure on the price level and __________________ pressure on Real GDP in the United States.

Accepted Answer

The answer of If U.S.real interest rates fall,international repercussions put...

Question 4

A simultaneous rightward shift in SRAS and leftward shift in AD may come from a dollar _______________ in the aftermath of a ____________________ in United States real interest rates.

Accepted Answer

The answer of A simultaneous rightward shift in SRAS and...

Question 5

With an increase in the budget deficit,the open-economy outcome,compared to the closed-economy outcome,features a ___________ in Real GDP.

Accepted Answer

In an open economy, an increase in the budget deficit could lead to higher interest rates, which in turn would cause a decrease in investment and net exports. As a result, the effect on Real GDP would be smaller compared to a closed economy where these channels are not open. Therefore, the increase in Real GDP in an open economy would be smaller.

Question 6

International feedback effects ________________ the effect on the unemployment rate of __________________ monetary policy.

Accepted Answer

The answer of International feedback effects ________________ the effect on...

Question 7

As a result of contractionary monetary policy,the open-economy outcome,compared to the closed-economy outcome,features a ___________ fall in Real GDP and a ____________ fall in the price level.

Accepted Answer

The answer of As a result of contractionary monetary policy,the...

Question 8

A simultaneous leftward shift in SRAS and rightward shift in AD may come from a dollar _______________ in the aftermath of a ____________________ in United States real interest rates.

Accepted Answer

A leftward shift in SRAS and a rightward shift in AD both represent a decrease in the economy's ability to produce goods and an increase in aggregate demand respectively. A dollar depreciation would make imports more expensive and exports less expensive, leading to a decrease in domestic supply and an increase in demand, which would shift AD to the right. A rise in US real interest rates would lead to increased foreign investment in the US, resulting in a higher exchange rate and a lower demand for US exports, which would shift SRAS to the left. Therefore, a dollar depreciation and a rise in US real interest rates would cause a leftward shift in SRAS and a rightward shift in AD simultaneously.

Question 9

With a decrease in the budget deficit,the open-economy outcome,compared to the closed-economy outcome,features a ___________ in Real GDP.

Accepted Answer

The answer of With a decrease in the budget deficit,the...

Question 10

Suppose Japanese real interest rates fall.Typically,we should expect a ____________ shift of the U.S.AD curve with a ___________________ shift in United States real interest rates.

Accepted Answer

The answer of Suppose Japanese real interest rates fall.Typically,we should...

Question 11

Which of the following is not an affect of a higher federal government budget deficit?

Accepted Answer

The answer of Which of the following is not an...

Question 12

Suppose the dollar depreciates in value in the foreign exchange markets.What is the impact on U.S.Real GDP?

Accepted Answer

The impact of dollar depreciation on U.S. Real GDP depends on the size of shifts in both the U.S. AD and SRAS curves. If the U.S. AD curve shifts rightward by more than the SRAS curve shifts leftward, there will be an increase in Real GDP. However, if the SRAS curve shifts leftward by more than the AD curve shifts rightward, Real GDP will decrease. Therefore, the correct answer is D.

Question 13

An increase in U.S.real interest rates causes the dollar to _________________,which tends to __________________ U.S.Real GDP.

Accepted Answer

An increase in U.S. real interest rates causes the dollar to appreciate, which means that it becomes stronger relative to other currencies. This tends to lower U.S. Real GDP because it makes exports more expensive for foreign buyers and imports cheaper for domestic buyers, thereby decreasing net exports and increasing the trade deficit. Additionally, a stronger dollar can make it harder for U.S. companies to compete with foreign firms, which can lead to lower profits and investment.

Question 14

Which of the following is not an affect of a higher federal budget deficit?

Accepted Answer

A higher federal budget deficit can lead to higher real interest rates and an appreciation of the currency, as it increases the demand for loanable funds and attracts foreign investors. It can also lead to a fall in the price of foreign inputs, as the appreciation of the currency makes imports cheaper. However, a rise in exports is not an effect of a higher federal budget deficit, as it depends on other factors such as the exchange rate and global demand for goods and services.

Question 15

Suppose the dollar appreciates in value in the foreign exchange markets.What is the impact on U.S.Real GDP?

Accepted Answer

The answer of Suppose the dollar appreciates in value in...

Question 16

A decrease in U.S.real interest rates causes the dollar to _________________,which tends to __________________ U.S.Real GDP.

Accepted Answer

The answer of A decrease in U.S.real interest rates causes...

Question 17

A decrease in Japanese real interest rates causes the dollar to _____________ which tends to _______________ U.S.Real GDP.

Accepted Answer

The answer of A decrease in Japanese real interest rates...

Question 18

Dollar appreciation raises United States Real GDP when the _____________ shift of the SRAS curve exceeds the __________ shift of the AD curve.

Accepted Answer

When the dollar appreciates, it increases the cost of exports and decreases the cost of imports, leading to a leftward shift in the AD curve. At the same time, the appreciation of the dollar decreases the cost of production, leading to a rightward shift in the SRAS curve. If the rightward shift of the SRAS curve exceeds the leftward shift of the AD curve, then there will be an increase in Real GDP in the United States. Therefore, the correct answer is B, which corresponds to a rightward shift in SRAS and a leftward shift in AD.

Question 19

If United States real interest rates rise,international repercussions put ____________ pressure on the price level and _______________ pressure on Real GDP in the United States.

Accepted Answer

The answer of If United States real interest rates rise,international...

Question 20

Which of the following is not an affect of a lower federal government budget deficit?

Accepted Answer

The answer of Which of the following is not an...

Quiz 24: Globalization and International Impacts on the Economy

Which of the following is not an affect of a lower federal government budget deficit?

If the United States buys inputs from France and the dollar appreciates relative to the euro,then Americans will have to pay for foreign inputs,and the U.S.SRAS curve will shift __.

If U.S.real interest rates fall,international repercussions put _ pressure on the price level and __ pressure on Real GDP in the United States.

A simultaneous rightward shift in SRAS and leftward shift in AD may come from a dollar _ in the aftermath of a ______ in United States real interest rates.

With an increase in the budget deficit,the open-economy outcome,compared to the closed-economy outcome,features a ___________ in Real GDP.

International feedback effects the effect on the unemployment rate of __ monetary policy.

As a result of contractionary monetary policy,the open-economy outcome,compared to the closed-economy outcome,features a _ fall in Real GDP and a __ fall in the price level.

A simultaneous leftward shift in SRAS and rightward shift in AD may come from a dollar _ in the aftermath of a ______ in United States real interest rates.

With a decrease in the budget deficit,the open-economy outcome,compared to the closed-economy outcome,features a ___________ in Real GDP.

Suppose Japanese real interest rates fall.Typically,we should expect a shift of the U.S.AD curve with a _______ shift in United States real interest rates.

Which of the following is not an affect of a higher federal government budget deficit?

Suppose the dollar depreciates in value in the foreign exchange markets.What is the impact on U.S.Real GDP?

An increase in U.S.real interest rates causes the dollar to _,which tends to __ U.S.Real GDP.

Which of the following is not an affect of a higher federal budget deficit?

Suppose the dollar appreciates in value in the foreign exchange markets.What is the impact on U.S.Real GDP?

A decrease in U.S.real interest rates causes the dollar to _,which tends to __ U.S.Real GDP.

A decrease in Japanese real interest rates causes the dollar to _ which tends to ___ U.S.Real GDP.

Dollar appreciation raises United States Real GDP when the ___ shift of the SRAS curve exceeds the shift of the AD curve.

If United States real interest rates rise,international repercussions put pressure on the price level and ___ pressure on Real GDP in the United States.

Which of the following is not an affect of a lower federal government budget deficit?