Unit 4 Review 2

If rGDP grows 5% per year, how many years would it take to double the rGDP in a country?

• 5 years

• 10 years

• 7 years

• 14 years

• 20 years

When the dollar depreciates:

• It causes a leftward shift in AD.

• It creates a rightward shift in AD.

• It creates a leftward shift in SRAS.

• It creates a rightward shift in SRAS.

• It creates a rightward shift in LRAS.

How will an increase in private savings in the US likely affect financial capital flows?

• Capital inflows increase.

• Capital outflows increase.

• Capital flows do not change.

• Capital outflows decrease.

• Capital inflows decrease.

France and the United States are trading partners. What would definitely lead to an appreciation of the dollar?

• Supply of the euro decreases.

• Demand for the euro increases.

• Demand for the dollar increases.

• Supply of the dollar increases.

• More goods are exported by France.

Which of the following will most likely cause an inflow of financial capital to Canada?

• An increase in private savings in Canada

• An increase in the Canadian money supply

• An increase in real interest rates of Canada’s trading partners

• An increase in the Canadian federal budget deficit

• An increase in Canadian exports

Which of the following best describes the impact if Japan places a tariff on Canadian exports?

• Demand for the Canadian dollar decreases and supply of the yen decreases.

• Demand for Canadian the dollar decreases and supply of the yen increases.

• Demand for the Canadian dollar decreases and supply of the yen is unchanged.

• Demand for the Canadian dollar increases and supply of the dollar increases.

• Demand for the Canadian dollar increases and supply of the yen decreases.

Contractionary monetary policy in the United States causes U.S. interest rates to _____ and the dollar to ______.

• decrease; depreciate

• increase; depreciate

• decrease; appreciate

• increase; appreciate

• decrease; remain constant in value