ECO 12

QN=278 (18003) If the supply of dollars in the market for foreign-currency exchange shifts left, then the exchange rate

• a. rises and the quantity of dollars exchanged falls.

• b. rises and the quantity of dollars exchanged does not change.

• c. rises and the quantity of dollars exchanged rises.

• d. falls and the quantity of dollars exchanged does not change.

QN=279 (17996) Which of the following will decrease U.S. net capital outflow?

• a. (i) capital flight from the United States

• b. (ii) the government budget deficit increases

• c. (iii) the U.S. imposes import quotas

• d. None of (i), (ii), and (iii) is correct.

QN=280 (17990) A rise in the budget deficit

• a. shifts both the supply of loanable funds in the market for loanable funds and the supply of dollars in the market for foreign-currency exchange right.

• b. shifts both the supply of loanable funds in the market for loanable fund and the supply of dollars in the market for foreign-currency exchange left.

• c. shifts both the demand for loanable funds in the market for loanable funds and the demand for dollars in the market for foreign-currency exchange right.

• d. shifts both the demand for loanable funds in the market for loanable funds and the demand for dollars in the market for foreign-currency exchange left.

QN=281 (18007) The open-economy macroeconomic model examines the determination of

• a. the output growth rate and the real interest rate.

• b. unemployment and the exchange rate.

• c. the output growth rate and the inflation rate.

• d. the trade balance and the exchange rate.

QN=282 (18015) When Mexico suffered from capital flight in 1994, Mexico's net capital outflow.

• a. and net exports decreased

• b. and net exports increased.

• c. increased while net exports decreased

• .d. decreased while net exports increased.

QN=283 (18008) Other things the same, a lower real interest rate decreases the quantity of

• a. loanable funds demanded.

• b. loanable funds supplied.

• c. domestic investment.

• d. net capital outflow.

QN=283 (18008) Other things the same, a lower real interest rate decreases the quantity of

• a. loanable funds demanded.

• b. loanable funds supplied.

• c. domestic investment.

• d. net capital outflow.

QN=284 (17998) If the demand for dollars in the market for foreign-currency exchange shifts left, then the exchange rate

• a. rises and the quantity of dollars exchanged rises.

• b. rises and the quantity of dollars exchanged does not change.

• c. falls and the quantity of dollars exchanged falls.

• d. falls and the quantity of dollars exchanged does not change.

QN=285 (18013) Refer to Figure 32-6. Which of the following shifts show the effects of an import quota?

• a. (i) shifting the middle supply curve in panel c to the one to its left.

• b. (ii) shifting the demand curve from the right to the left in panel c.

• c. (iii) shifting the demand curve from the left to the right in panel c.

• d. None of (i), (ii), and (iii) is correct.

QN=286 (18011) If a government started with a budget deficit and moved to a surplus, domestic investment

• a. and the real exchange rate would rise.

• b. and the real exchange rate would fall.

• c. would rise and the real exchange rate would fall.

• d. would fall and the real exchange rate would rise.