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# Macroeconomics Principles

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## Quiz 16 : Open Economy Macroeconomics

A depreciation of the U.S. dollar against the Chinese yuan will likely shift the U.S. aggregate demand curve to the _____, leading to _____ output in the short run.
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Answer:

D

Which of these would NOT be included in the capital account?
Free
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Answer:

D

The exchange rate system that results in the greatest amount of fluctuation in currency values is:
Free
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Answer:

A

The two main parts of the balance of payments are the:
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If a government wishes to keep its currency undervalued relative to the U.S. dollar, it would need to:
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Which of these items is NOT a component of the current account?
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In a country that fixes its exchange rate to the euro, monetary policy is _____ and fiscal policy is _____.
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Which of these items is NOT a component of the capital account?
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If a country has a current account deficit of $200 billion, this means that: Multiple Choice Answer: If the real exchange rate of the U.S. dollar in terms of the euro increases to 1.2, this means that: Multiple Choice Answer: Which of these generates the largest volume of international commercial transactions? Multiple Choice Answer: The record of all payments received from foreign countries and all payments made to them is called the: Multiple Choice Answer: In which account would remittances (money sent back by foreign workers to their home countries) appear? Multiple Choice Answer: If a Starbucks vanilla latte costs$5 in Seattle and 4 euros in Paris, what must the exchange rate be if purchasing power parity holds?
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For much of the past few decades, the United States has had a current account _____ and a capital account _____.
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Payments for imports and exports of goods and services are shown in:
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After some troubling times in Egypt, American tourists are visiting in record numbers. As a result, demand for Egyptian pounds will _____ which means its value will _____ against the U.S. dollar, all else equal.
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If rising inflation in an economy with fixed exchange rates puts downward pressure on the value of the currency, what action must the government take to maintain fixed exchange rates?
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Which of these is NOT a benefit of pegging one's currency to the U.S. dollar or euro?
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If yesterday one U.S. dollar could be exchanged for 120 Japanese yen, while today a U.S. dollar can be exchanged for 118 yen, this means that the U.S. dollar has _____ against the yen and imports from Japan became _____.
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