Paul, a US citizen, builds a telescope factory in Israel. His expenditures ()
A. increase US and Israeli net capital outflow.
B. increase US net capital outflow, but decrease Israeli net capital outflow.
C. decrease US net capital outflow, but increase Israeli net capital outflow.
D. None of the above is correct.
查看答案
If the US real exchange rate appreciates, US exports ()
A. increase and US imports decrease.
B. decrease and US imports increase.
C. and US imports both increase.
D. and US imports both decrease.
An increase in the US government budget deficit shifts the ()
A. demand for loanable funds right and decreases investment spending.
B. supply of loanable funds right and increases investment spending.
C. supply of loanable funds left and decreases investment spending.
D. None of the above is correct.
If the US real exchange rate appreciates, US net exports ()
A. increase and US net capital outflow decreases.
B. decrease and US net capital outflow increases.
C. and US net capital outflow both increase.
D. and US net capital outflow both decrease.
Purchasing-power parity theory does not hold at all times because ()
A. many goods are not easily transported.
B. the same goods produced in different countries may be imperfect substitutes for each other.
C. Both a and b are correct.
D. prices are different across countries.