9/13/25, 8:41 AM Module 3 Homework Assignment: Attempt review | LSU Moodle 4.5
Home / My Courses / 2025 Fall 1 BADM 7200E for Faik Koray (Online)
/ Module 3: Large Open Economy and Unemployment / Module 3 Homework Assignment
Module 3 Homework Assignment
Status Finished
Started Saturday, September 6, 2025, 1:58 PM
Completed Saturday, September 6, 2025, 3:08 PM
Duration 1 hour 9 mins
Grade 88.00 out of 100.00
Question 1
Correct 4.00 points out of 4.00
In a large open economy, the interest rate adjusts so that domestic saving equals:
Select one:
A. domestic investment plus net capital outflow.
B. net capital outflow.
C. domestic investment.
D. net exports.
The correct answer is: domestic investment plus net capital outflow.
Question 2
Correct 4.00 points out of 4.00
Expansionary fiscal policy in a large open economy ______ the real interest rate and ______ the real
exchange rate.
Select one:
A. increases; increases
B. increases; decreases
C. decreases; increases
D. does not change; increases
The correct answer is: increases; increases
https://moodle.lsu.edu/mod/quiz/review.php?attempt=8753795&cmid=3135115#question-9158485-6 1/11
, 9/13/25, 8:41 AM Module 3 Homework Assignment: Attempt review | LSU Moodle 4.5
Question 3
Correct 4.00 points out of 4.00
In a large open economy, if an import quota is adopted, then:
Select one:
A. net exports rise and the real exchange rate rises.
B. net exports rise and the real exchange rate falls.
C. net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate falls.
D. net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate rises.
The correct answer is: net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate
rises.
Question 4
Correct 4.00 points out of 4.00
Net capital outflow in a large country:
Select one:
A. depends only on domestic saving.
B. depends only on the foreign interest rate.
C. rises as the real domestic interest rate rises.
D. declines as the domestic interest rate rises.
The correct answer is: declines as the domestic interest rate rises.
https://moodle.lsu.edu/mod/quiz/review.php?attempt=8753795&cmid=3135115#question-9158485-6 2/11
Home / My Courses / 2025 Fall 1 BADM 7200E for Faik Koray (Online)
/ Module 3: Large Open Economy and Unemployment / Module 3 Homework Assignment
Module 3 Homework Assignment
Status Finished
Started Saturday, September 6, 2025, 1:58 PM
Completed Saturday, September 6, 2025, 3:08 PM
Duration 1 hour 9 mins
Grade 88.00 out of 100.00
Question 1
Correct 4.00 points out of 4.00
In a large open economy, the interest rate adjusts so that domestic saving equals:
Select one:
A. domestic investment plus net capital outflow.
B. net capital outflow.
C. domestic investment.
D. net exports.
The correct answer is: domestic investment plus net capital outflow.
Question 2
Correct 4.00 points out of 4.00
Expansionary fiscal policy in a large open economy ______ the real interest rate and ______ the real
exchange rate.
Select one:
A. increases; increases
B. increases; decreases
C. decreases; increases
D. does not change; increases
The correct answer is: increases; increases
https://moodle.lsu.edu/mod/quiz/review.php?attempt=8753795&cmid=3135115#question-9158485-6 1/11
, 9/13/25, 8:41 AM Module 3 Homework Assignment: Attempt review | LSU Moodle 4.5
Question 3
Correct 4.00 points out of 4.00
In a large open economy, if an import quota is adopted, then:
Select one:
A. net exports rise and the real exchange rate rises.
B. net exports rise and the real exchange rate falls.
C. net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate falls.
D. net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate rises.
The correct answer is: net exports remain unchanged, as imports and exports decrease by equal amounts, while the real exchange rate
rises.
Question 4
Correct 4.00 points out of 4.00
Net capital outflow in a large country:
Select one:
A. depends only on domestic saving.
B. depends only on the foreign interest rate.
C. rises as the real domestic interest rate rises.
D. declines as the domestic interest rate rises.
The correct answer is: declines as the domestic interest rate rises.
https://moodle.lsu.edu/mod/quiz/review.php?attempt=8753795&cmid=3135115#question-9158485-6 2/11
