in-depth macro

The formula of The National Income is:

• Y=C+I+G

• Y=C+I+NX

• Y=C+I+G+NX

• Y=C+S

A country with a TRADE DEFICIT is a:

• Net borrower

• Net lender

• Net foreign investment

• No answer

 Which of the following statements about the increase in the value of foreign commodities is true?

• The increase in the value of foreign commodities is known as revaluation

• The increase in the value of foreign commodities is known as devaluation

• The increase in the value of foreign commodities is known as inflation

• The increase in the value of foreign commodities is known as deflation

 Which of the following statements is correct?

• When the export and import of tangible goods are equal, the situation is called a trade deficit

• When the export and import of tangible goods are equal, the situation is called a trade surplus

• When the export and import of tangible goods are equal, the situation is called the balance of trade

• When the export and import of tangible goods are equal, the situation is called the balance of payment

 Which of the following statements is true if the government conducts an expansionary fiscal policy?

• National saving decreases and the supply of loanable funds curve shifts to the left.

• National saving decreases and the supply of loanable funds curve shifts to the right.

• National saving increases and the supply of loanable funds curve shifts to the left.

• National saving increases and the supply of loanable funds curve shifts to the right.

When expansionary fiscal policy abroad raises the world interest rate, what are its results?

• Investment level increases, net exports increase.

• Investment level increases, net exports decrease.

• Investment level decreases, net exports increase.

• Investment level decreases, net exports decrease. 

An expansionary fiscal policy at home would lead to:

• A higher real exchange rate & higher net exports

• A lower real exchange rate & higher net exports

• A lower real exchange rate & lower net exports

• A higher real exchange rate & lower net exports

The determinant of the nominal exchange rate can be rewritten in terms of growth rates as:

• Δe/e = Δε/ε + ΔP/P -  ΔP*/P*

• Δe/e = Δε/ε - π + π*

• Both A & B are correct

• Both A & B are incorrect

The open economy is in equilibrium when there is …..

• an Equilibrium in the loanable funds market

• an Equilibrium in the foreign exchange market

• a simultaneous equilibrium in the two markets: loanable funds market and foreign exchange market​

• no equilibrium in the two markets.

In the loanable funds market, the identity for Saving at the equilibrium is written as:

• S= I+NFI

• S= I

• S= NFI

• S= NFI -I