ECON 2101 UNCC
Macroeconomics Test 4
Connaughton (questions and
answers)
In the United States since 1960, - answer both the export share of GDP and
the import share of GDP have increased.
International trade has the potential to - answer increase the availability of
goods and services to all nations.
Suppose that government purchases decrease and that the Fed acts to
prevent any change in the U.S. exchange rate. This action necessarily
requires - answer a DECREASE in money supply
Which of the following generates a demand for US dollars in the currency
market?
A) Japanese tourists shop in Barney's of New York.
B) A Japanese businesswoman sells her U.S. government bonds.
C) An American citizen buys Japanese Yen for her trip to Japan.
D) A restaurant in Kansas imports Kobe beef from Japan. - answer Japanese
tourists shop in Barney's of New York
The U.S. and Canada are major trading partners. Suppose the Canadian
dollar rises sharply in value against the U.S. dollar. At the same time, strong
income growth in the U.S. increased the demand for Canadian exports. What
happens to Canada's net exports if strong income growth in the U.S. has a
stronger effect than that of the Canadian dollar appreciation? - answer The
effect on net exports is indeterminate
Macroeconomics Test 4
Connaughton (questions and
answers)
In the United States since 1960, - answer both the export share of GDP and
the import share of GDP have increased.
International trade has the potential to - answer increase the availability of
goods and services to all nations.
Suppose that government purchases decrease and that the Fed acts to
prevent any change in the U.S. exchange rate. This action necessarily
requires - answer a DECREASE in money supply
Which of the following generates a demand for US dollars in the currency
market?
A) Japanese tourists shop in Barney's of New York.
B) A Japanese businesswoman sells her U.S. government bonds.
C) An American citizen buys Japanese Yen for her trip to Japan.
D) A restaurant in Kansas imports Kobe beef from Japan. - answer Japanese
tourists shop in Barney's of New York
The U.S. and Canada are major trading partners. Suppose the Canadian
dollar rises sharply in value against the U.S. dollar. At the same time, strong
income growth in the U.S. increased the demand for Canadian exports. What
happens to Canada's net exports if strong income growth in the U.S. has a
stronger effect than that of the Canadian dollar appreciation? - answer The
effect on net exports is indeterminate
