NEW
Font size
WorksheetsMacro Economics Unit 6
Total questions: 10
Worksheet time: 10mins
An appreciation of the United States dollar on the foreign exchange market could be caused by a decrease in which of the following?
United States interest rates
The United States consumer price index
exports from the US
The tariff on goods imported into the US
In a flexible system of exchange rates, an open market sale of bonds by the Federal Reserve will most likely change the money supply, the interest rate, and the value of the United States dollar in which of the following ways?
Money Supply: Increase
Interest Rate: Decrease
Value of the dollar: Decrease
Money Supply: Increase
Interest Rate: Decrease
Value of the dollar: Decrease
Money Supply: Decrease
Interest Rate: Decrease
Value of the dollar: Decrease
Money Supply: Decrease
Interest Rate: Increase
Value of the dollar: Increase
Following a decrease in the real interest rate, there is an increase in financial capital outflows from Country A. The increase in capital outflows will most likely have which of the following effects on Country A's net export and aggregate demand?
Net export: decrease
Aggregate Demand: Decrease
Net exports: Decrease
Aggregate Demand: No change
Net exports: Increase
Aggregate Demand: Increase
Mark Cavendish
Assuming fixed exchange rates, if country Z's rate of inflation increases relative to it trading partners, Country Z's imports and exports will most likely change in which of the following ways?
Imports: Decrease
Exports: Decrease
Imports: Decrease
Exports: Increase
Imports: Increase
Exports Decrease
Imports: Increase
Exports: Decrease
If the Federal Reserve undertakes a policy to reduce interest rates, international capital flows will be affected in which of the following ways?
Long run capital outflows from the US will decrease
Long-run capital inflows to the US will increase
Short run capital outflows from the US will decrease
Short run capital inflows to the US will decrease
If a French firm buys computers from the US, there would be an increase in which of the following in the foreign exchange market?
Demand for US dollars and supply of euros
Demand for both US dollars and Euros
Supply of US dollars and demand for euros
Supply of both US dollars and euros
The purchase of US government bonds by Japanese investors will be included in Japan's
current account
financial account (formerly called capital account)
trade deficit
imports
Which of the following will increase the US trade deficit?
US firms buying technologically advanced computers from Germany
European citizens traveling in large numbers to the United States
A US company being hired to build a production plant in another country
GDP in a poor French accent
If Mexicans increase their investment in the United States, the supply of Mexican pesos to the foreign exchange market and the dollar price of the peso will most likely change in which of the following ways?
supply of pesos: increase
Dollar price of Peso: increase
Supply of Pesos: Increase
Dollar price of Peso: Decrease
Supply of Pesos: Decrease
Dollar price of peso: increase
Supply of Pesos: decrease
Dollar price of peso:
decrease
The equilibrium real interest rate in Britain increases to 8 percent while the equilibrium real interest rate in Australia remains at 4 percent. As a result, finacial capital will flow from
Britain to Australia, increasing the interest rate in Britain and decreasing the interest rate in Australia
Britain to Australia, decreasing the interest rate in Britain and increasing the interest rate in Australia
Australia to Britain, decreasing the interest rate in Britain and decreasing the interest rate in Australia
Australia and Britain, decreasing the interest rate in Britain and increasing the interest rate in Australia
