AP MACROECONOMICS UNIT 6
ATTACHED WITH CORRECT ANSWERS
The fcurrent faccount fincludes fwhich fof fthe ffollowing?
a. fpayments ffor fgoods fand fservices, fgross finternational ftransfer fpayments, fand ffactor
fincome
b. fpayments ffor fgoods fand fservices, fnet finternational ftransfer fpayments, fand ffactor
fincome
c. fsales fof fassets fto fforeigners fminus fpurchases fof fassets ffrom fforeigners
d. fsales fof fassets fto fforeigners fplus fpurchases fof fassets ffrom fforeigners
e. fpayments ffor fgoods fand fservices, fnet finternational ftransfer fpayments, fand fsales fof
fassets fto fforeigners f- fb. fpayments ffor fgoods fand fservices, fnet finternational ftransfer
fpayments, fand ffactor fincome
The fbalance fof fpayments fon fthe fcurrent faccount fplus fthe fbalance fof fpayments fon
fthe ffinancial faccount fequals fto f
a. fzero
b. fone
c. fthe ftrade fbalance
d. fnet fcapital fflows
e. fthe fsize fof fthe ftrade fdeficits f- fa. fzero
The ffinancial faccount fwas fpreviously fknown fas fthe f
a. fgross fnational fproduct
b. fcapital faccount
c. ftrade fdeficit
d. finvestment faccount
e. ftrade fbalance f- fb. fcapital faccount
The ftrade fbalance fincludes fwhich fof fthe ffollowing?
a. fcapital finflows
b. fcapital foutflows
c. fnet fcapital fflows
d. fimports fminus fexports
e. fexports fminus fimports f- fe. fexport fminus fimports
Which fof fthe ffollowing fwill fincrease fthe fdemand ffor floanable ffunds fin fa fcountry?
a. feconomic fgrowth
b. fdecreased finvestment fopportunities
c. fa frecession
d. fdecreased fprivate fsavings frates
e. fgovernment fbudget fsurpluses f- fa. feconomic fgrowth
, When fthe fU.S. fdollar fbuys fmore fJapanese fyen, fwhat fhas fhappened fto fthe fvalue fof
fthe fU.S. fdollar fand fthe fJapanese fyen?
a. fUSD: fappreciated, fYen: fappreciated
b. fUSD: fappreciated, fYen: fdepreciated
c. fUSD: fdepreciated, fYen: fappreciated
d. fUSD: fdepreciated, fYen: fdepreciated
e. fUSD: fdepreciated, fYen: fnot fchanged f- fb. fUSD: fappreciated, fYen: fdepreciated
The fnominal fexchange frate fat fwhich fa fgiven fbasket fof fgoods fand fservices fwould
fcost fthe fsame fin feach fcountry fdescribes
a. fthe finternational fconsumer fprice findex
b. fappreciation
d. fdepreciation
d. fpurchasing fpower fparity
e. fthe fbalance fof fpayments fon fthe fcurrent faccount f- fd. fpurchasing fpower fparity
What fhappens fto fthe freal fexchange frate fbetween fthe feuro fand fthe fU.S. fdollar
f(expressed fas feuros fper fdollar) fif fthe faggregate fprice flevels fin fEurope fand fthe
fUnited fStates fboth ffall?
a. fIt fis funaffected f
b. fIt fincreases
c. fIt fdecreases
d. fIt fmay fincrease, fdecrease, for fstay fthe fsame
e. fIt fcannot fbe fcalculated f- fd. fIt fmay fincrease, fdecrease, for fstay fthe fsame
Which fof fthe ffollowing fwould fcause fthe freal fexchange frate fbetween fpesos fand fU.S.
fdollars f(in fterms fof fpesos fper fdollar) fto fdecrease?
a. fan fincrease fin fnet fcapital fflows ffrom fMexico fto fthe fUnited fStates
b. fan fincrease fin fthe freal finterest frate fin fMexico frelative fto fthe fUnited fStates
c. fa fdoubling fof fprices fin fboth fMexico fand fthe fUnited fStates
d. fa fdecrease fin foil fexports ffrom fMexico fto fthe fUnited fStates
e. fan fincrease fin fthe fbalance fof fpayments fon fthe fcurrent faccount fin fthe fUnited
fStates f- fb. fan fincrease fin fthe freal finterest frate fin fMexico frelative fto fthe fUnited fStates
Which fof fthe ffollowing fwill fdecrease fthe fsupply fof fU.S. fdollars fin fthe fforeign
fexchange fmarket?
a. fU.S. fresidents fincrease ftheir ftravel fabroad
b. fU.S. fconsumers fdemand ffewer fimports
c. fForeigners fincrease ftheir ftravel fto fthe fUnited fStates
d. fForeigners fincrease ftheir ftravel fto fthe fUnited fStates
e. fForeign finvestors fsee fincreased finvestment fopportunities fin fthe fUnited fStates f- fb.
fU.S. fconsumers fdemand ffewer fimports
ATTACHED WITH CORRECT ANSWERS
The fcurrent faccount fincludes fwhich fof fthe ffollowing?
a. fpayments ffor fgoods fand fservices, fgross finternational ftransfer fpayments, fand ffactor
fincome
b. fpayments ffor fgoods fand fservices, fnet finternational ftransfer fpayments, fand ffactor
fincome
c. fsales fof fassets fto fforeigners fminus fpurchases fof fassets ffrom fforeigners
d. fsales fof fassets fto fforeigners fplus fpurchases fof fassets ffrom fforeigners
e. fpayments ffor fgoods fand fservices, fnet finternational ftransfer fpayments, fand fsales fof
fassets fto fforeigners f- fb. fpayments ffor fgoods fand fservices, fnet finternational ftransfer
fpayments, fand ffactor fincome
The fbalance fof fpayments fon fthe fcurrent faccount fplus fthe fbalance fof fpayments fon
fthe ffinancial faccount fequals fto f
a. fzero
b. fone
c. fthe ftrade fbalance
d. fnet fcapital fflows
e. fthe fsize fof fthe ftrade fdeficits f- fa. fzero
The ffinancial faccount fwas fpreviously fknown fas fthe f
a. fgross fnational fproduct
b. fcapital faccount
c. ftrade fdeficit
d. finvestment faccount
e. ftrade fbalance f- fb. fcapital faccount
The ftrade fbalance fincludes fwhich fof fthe ffollowing?
a. fcapital finflows
b. fcapital foutflows
c. fnet fcapital fflows
d. fimports fminus fexports
e. fexports fminus fimports f- fe. fexport fminus fimports
Which fof fthe ffollowing fwill fincrease fthe fdemand ffor floanable ffunds fin fa fcountry?
a. feconomic fgrowth
b. fdecreased finvestment fopportunities
c. fa frecession
d. fdecreased fprivate fsavings frates
e. fgovernment fbudget fsurpluses f- fa. feconomic fgrowth
, When fthe fU.S. fdollar fbuys fmore fJapanese fyen, fwhat fhas fhappened fto fthe fvalue fof
fthe fU.S. fdollar fand fthe fJapanese fyen?
a. fUSD: fappreciated, fYen: fappreciated
b. fUSD: fappreciated, fYen: fdepreciated
c. fUSD: fdepreciated, fYen: fappreciated
d. fUSD: fdepreciated, fYen: fdepreciated
e. fUSD: fdepreciated, fYen: fnot fchanged f- fb. fUSD: fappreciated, fYen: fdepreciated
The fnominal fexchange frate fat fwhich fa fgiven fbasket fof fgoods fand fservices fwould
fcost fthe fsame fin feach fcountry fdescribes
a. fthe finternational fconsumer fprice findex
b. fappreciation
d. fdepreciation
d. fpurchasing fpower fparity
e. fthe fbalance fof fpayments fon fthe fcurrent faccount f- fd. fpurchasing fpower fparity
What fhappens fto fthe freal fexchange frate fbetween fthe feuro fand fthe fU.S. fdollar
f(expressed fas feuros fper fdollar) fif fthe faggregate fprice flevels fin fEurope fand fthe
fUnited fStates fboth ffall?
a. fIt fis funaffected f
b. fIt fincreases
c. fIt fdecreases
d. fIt fmay fincrease, fdecrease, for fstay fthe fsame
e. fIt fcannot fbe fcalculated f- fd. fIt fmay fincrease, fdecrease, for fstay fthe fsame
Which fof fthe ffollowing fwould fcause fthe freal fexchange frate fbetween fpesos fand fU.S.
fdollars f(in fterms fof fpesos fper fdollar) fto fdecrease?
a. fan fincrease fin fnet fcapital fflows ffrom fMexico fto fthe fUnited fStates
b. fan fincrease fin fthe freal finterest frate fin fMexico frelative fto fthe fUnited fStates
c. fa fdoubling fof fprices fin fboth fMexico fand fthe fUnited fStates
d. fa fdecrease fin foil fexports ffrom fMexico fto fthe fUnited fStates
e. fan fincrease fin fthe fbalance fof fpayments fon fthe fcurrent faccount fin fthe fUnited
fStates f- fb. fan fincrease fin fthe freal finterest frate fin fMexico frelative fto fthe fUnited fStates
Which fof fthe ffollowing fwill fdecrease fthe fsupply fof fU.S. fdollars fin fthe fforeign
fexchange fmarket?
a. fU.S. fresidents fincrease ftheir ftravel fabroad
b. fU.S. fconsumers fdemand ffewer fimports
c. fForeigners fincrease ftheir ftravel fto fthe fUnited fStates
d. fForeigners fincrease ftheir ftravel fto fthe fUnited fStates
e. fForeign finvestors fsee fincreased finvestment fopportunities fin fthe fUnited fStates f- fb.
fU.S. fconsumers fdemand ffewer fimports
