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In the open-economy macroeconomic model, if the supply of loanable funds increases, net capital outflow ()

A. and the real exchange rate increase.
B. and the real exchange rate decrease.
C. increases and the real exchange rate decreases.
D. decreases and the real exchange rate increases.

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The country of Meditor is politically very stable and has a long tradition of respecting property rights. If several other countries suddenly became politically unstable, we would expect Meditor’s ()

A. real interest rate to rise.
B. real exchange rate to fall.
C. net exports to fall.
D. None of the above is likely.

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In 2002 it looked like the Argentinean government might default on its debt (which eventually it did). The open-economy macroeconomic model predicts that this should have ()

A. raised Argentinean interest rates and caused the Argentinean currency to appreciate.
B. raised Argentinean interest rates and caused the Argentinean currency to depreciate.
C. lowered Argentinean interest rates and caused the Argentinean currency to appreciate.
D. lowered Argentinean interest rates and caused the Argentinean currency to depreciate.

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Mike, a US citizen, buys $1,000 worth of cheese from France. His action alone ()

A. increases US imports by $1,000 and increases US net exports by $1,000.
B. increases US imports by $1,000 and decreases US net exports by $1,000.
C. increases US exports by $1,000 and increases US net exports by $1,000.
D. increases US exports by $1,000 and decreases US net exports by $1,000.

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Suppose that more Chinese decide to vacation in the US and that the Chinese purchase more US Treasury bonds. Ignoring how payments are made for these purchases, ()

A. the first action by itself raises US net exports, the second action by itself raises US net capital outflow.
B. the first action by itself raises US net exports, the second action by itself lowers US net capital outflow.
C. the first action by itself lowers US net exports, the second action by itself raises US net capital outflow.
D. the first action by itself lowers US net exports, the second action by itself lowers US net capital outflow.

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In the open-economy macroeconomic model, if the supply of loanable funds increases, net capital outflow ()

A. and the real exchange rate increase. B. and the real exchange rate decrease. C. increases and the real exchange rate decreases. D. decreases and the real exchange rate increases.

The country of Meditor is politically very stable and has a long tradition of respecting property rights. If several other countries suddenly became politically unstable, we would expect Meditor’s ()

In 2002 it looked like the Argentinean government might default on its debt (which eventually it did). The open-economy macroeconomic model predicts that this should have ()

Mike, a US citizen, buys $1,000 worth of cheese from France. His action alone ()

Suppose that more Chinese decide to vacation in the US and that the Chinese purchase more US Treasury bonds. Ignoring how payments are made for these purchases, ()

A. and the real exchange rate increase.
B. and the real exchange rate decrease.
C. increases and the real exchange rate decreases.
D. decreases and the real exchange rate increases.