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Class 12 Economics (Macro Economics) Chapter 6 Open Economy Macroeconomics Quiz 5 (23 MCQs)

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1. Peter, a Canadian citizen, sells several hundred cases of smoked salmon to a restaurant chain in the United States. By itself this sale
2. An economy that interacts with other economies is known as
3. If the exchange rate changes from 30 Thai bhat per dollar to 45 Thai bhat per dollar, the dollar has
4. If a dollar currently purchases 12.5 pesos and someone forecasts that in a year it will be 14 pesos, then the forecast is given in
5. Net capital outflow equals
6. In the Mundell-Fleming model with a floating exchange rate and perfect capital mobility, an increase in the money supply does all of the following EXCEPT:
7. If the exchange rate were 5 Egyptian pounds per U.S. dollar, a watch that costs $ 25 US dollars would cost
8. If a country changes its corporate tax laws so that foreign businesses build and manage more business in that country, then that net capital outflow of that country
9. When Claudia, a U.S. citizen, purchases a handbag made in France, the purchase is
10. If you are vacationing in France and the dollar depreciates relative to the euro, then
11. When people take advantage of differences in prices for the same good by buying it where itis cheap and selling it where it is expensive, it is known as
12. One year a country has negative net exports. The next year it still has negative net exports and imports have risen more than exports.
13. Net exports of a country are the value of goods
14. If the exchange rate changes from 3 Brazilian real per dollar to 4 reals per dollar,
15. In the context of the chapter, what does external balance refer to?
16. If a U.S. shirtmaker purchases cotton from Egypt, U.S. net exports
17. Who is worse-off when countries trade?
18. Other things the same, if the dollar appreciates relative to the Japanese yen, then
19. What is the main objective of using tariffs in trade policy?
20. According to purchasing power parity, if the same basket of goods costs $ 100 in the U.S. and 50 pounds in Britain, then what is the nominal exchange rate?
21. Jill, a U.S. citizen, uses some euros to purchase a bond issued by a French vineyard. This exchange
22. What does the LM curve represent?
23. Which of the following would directly increase U.S. net capital outflow?
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