At a given real exchange rate, which of the following, by itself, would increase the supply of dollars in the market for foreign-currency exchange? ()
A. foreign citizens buy more US bonds
B. US citizens buy more foreign bonds
C. foreign citizens buy more US goods
D. US citizens buy more foreign goods
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In the open-economy macroeconomic model, equilibrium is determined by the equality between the supply of dollars which comes from ()
A. US national saving and the demand for dollars for US net exports.
B. US net capital outflow and the demand for dollars for US net exports.
C. domestic investment and the demand for US net exports.
D. foreign demand for US goods and US demand for foreign goods.
In the open-economy macroeconomic model, if a country's interest rate increases, its 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.
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 ()
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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