1) For an open economy, which of the following expressions represents saving ( S)?
a. I + G – T + NX
b. I + T – G + NX
c. G – T + NX – I
d. G – T – NX + I
e. I + T – G – NX
Answer =
2) In a small country, the effect of a given change in government spending:
a. on output is small and the effect on the trade balance is large.
b. on output is large and the effect on the trade balance is small.
c. on output is large and the effect on the trade balance is large.
d. on output is small and the effect on the trade balance is small.
Answer =
3) Suppose E decreases by 2%. Which of the following will have occurred as a result of this reduction in E?
a. nominal appreciation
b. real appreciation if P decreases by 2%
c. real depreciation if P increases by 2%
d. nominal depreciation
Answer =
4) What are the sources of China’s phenomenal output growth rates?
a. very high accumulation of capital
b. very fast technological progress
c. very hard working people
d. Both A and B.
e. None of the above.
Answer =
5) Suppose a country switches from a flexible to a fixed exchange rate. Which of the following will occur as a result of this change?
a. Both fiscal and monetary policy will become more effective in changing GDP.
b. Both fiscal and monetary policy will become completely ineffective in changing GDP.
c. Monetary policy will become a more effective tool for changing output.
d. A given change in government spending will now have a greater effect on output.
e. None of the above.
Answer =
6) Which of the following events will cause the largest real depreciation for the domestic economy?
a. a 6% reduction in E and a 6% reduction in P *
b. a 6% increase in P and a 6% reduction in P *
c. a 6% decrease in E and a 6% increase in P *
d. a 2% increase in E and a 2% increase in P
e. a 3% increase in E
Answer =
7) Suppose that policy makers decide to revalue the currency, such an action generally represents:
a. a reduction in the foreign price level.
b. an increase in the pegged value of the domestic currency.
c. a decision to let the currency float.
d. an increase in the domestic price level.
e. None of the above.
Answer =
[meteor_slideshow slideshow="slide3"]Are you looking for a similar paper or any other quality academic essay? Then look no further. Our research paper writing service is what you require. Our team of experienced writers is on standby to deliver to you an original paper as per your specified instructions with zero plagiarism guaranteed. This is the perfect way you can prepare your own unique academic paper and score the grades you deserve.
[meteor_slideshow slideshow="slide2"]Use the order calculator below and get ordering with idealtermpapers.com now! Contact our live support team for any assistance or inquiry.
[order_calculator]