ECON 2030 FINAL EXAM ATTACHED
WITH VERIFIED ANSWERS
In bthe bopen-economy bmacroeconomic bmodel, bif bforeign binterest brates brise band bthe
bU.S binterest brate bstays bthe bsame bthen, bU.S
a) bnet bcapital boutflow brises, bso bthe bsupply bof bdollars bin bthe bmarket bfor bforeign
bexchange bshifts bright.
b) bnet bcapital boutflow brises, bso bthe bdemand bfor bdollars bin bthe bmarket bfor bforeign
bexchange bshifts bright.
c) bnet bcapital boutflow bfalls, bso bthe bsupply bof bdollars bin bthe bmarket bfor bforeign
bexchange bshifts bleft.
d) bnet bcapital boutflow bfalls, bso bthe bdemand bfor bdollars bin bthe bmarket bfor bforeign
bexchange bshifts bleft. b- bCORRECT✅✅a) bnet bcapital boutflow brises, bso bthe bsupply
bof bdollars bin bthe bmarket bfor bforeign bexchange bshifts bright.
If bforeigners bwant bto bbuy bmore bU.S. bbonds, bthen bin bthe bmarket bfor bforeign-
currency bexchange bthe bexchange brate
a) band bthe bquantity bof bdollars btraded brises.
b) brises band bthe bquantity bof bdollars btraded bfalls.
c) bfalls band bthe bquantity bof bdollars btraded brises.
d) band bthe bquantity bof bdollars btraded bfalls. b- bCORRECT✅✅b) brises band bthe
bquantity bof bdollars btraded bfalls.
In bthe bopen-economy bmacroeconomic bmodel, bif binvestment bdemand bdecreases,
bthen
a) bthe bsupply bof bdollars bin bthe bmarket bfor bforeign-currency bexchange bshifts bleft.
b) bthe bsupply bof bdollars bin bthe bmarket bfor bforeign-currency bexchange bshifts bright.
c) bthe bdemand bfor bdollars bin bthe bmarket bfor bforeign-currency bexchange bshifts bleft.
d) bthe bdemand bfor bdollars bin bthe bmarket bfor bforeign-currency bexchange bshifts
bright. b- bCORRECT✅✅b) bthe bsupply bof bdollars bin bthe bmarket bfor bforeign-
currency bexchange bshifts bright.
Other bthings bthe bsame, bwhich bof bthe bfollowing bwould bcause bthe bexchange brate bto
brise?
a) bboth ban bincrease bin bthe binterest brate band ban bincrease bin bforeign bdemand bfor
bU.S. bgoods band bservices.
b) ban bincrease bin bthe binterest brate, bbut bnot ban bincrease bin bforeign bdemand bfor
bU.S. bgoods band bservices.
, c) ban bincrease bin bforeign bdemand bfor bU.S. bgoods band bservice, bbut bnot ban
bincrease bin bthe bU.S. binterest brate.
d) bneither ban bincrease bin bthe bU.S. binterest brate bnor ban bincrease bin bthe bdemand
bfor bU.S. bgoods band bservices. b- bCORRECT✅✅a) bboth ban bincrease bin bthe
binterest brate band ban bincrease bin bforeign bdemand bfor bU.S. bgoods band bservices.
A brise bin bthe bbudget bdeficit
a) bshifts bboth bthe bsupply bof bloanable bfunds bin bthe bmarket bfor bloanable bfunds band
bthe bsupply bof bdollars bin bthe bmarket bfor bforeign-currency bexchange bright.
b) bshifts bboth bthe bsupply bof bloanable bfunds bin bthe bmarket bfor bloanable bfunds band
bthe bsupply bof bdollars bin bthe bmarket bfor bforeign-currency bexchange bleft.
c) bshifts bboth bthe bdemand bfor bloanable bfunds bin bthe bmarket bfor bloanable bfunds
band bthe bdemand bfor bdollars bin bthe bmarket bfor bforeign-currency bexchange bright.
d) bshifts bboth bthe bdemand bfor bloanable bfunds bin bthe bmarket bfor bloanable bfunds
band bthe bdemand bfor bdollars bin bthe bmarket bfor bforeign-currency bexchange bleft. b-
bCORRECT✅✅b) bshifts bboth bthe bsupply bof bloanable bfunds bin bthe bmarket bfor
bloanable bfunds band bthe bsupply bof bdollars bin bthe bmarket bfor bforeign-currency
bexchange bleft.
An bincrease bin ba bcountry's bbudget bsurplus bshifts bits
a) bdemand bfor bloanable bfunds bright band bdecreases binvestment bspending.
b) bsupply bof bloanable bfunds bright band bincreases binvestment bspending.
c) bsupply bof bloanable bfunds bleft band bdecreases binvestment bspending.
d) bNone bof bthe babove bis bcorrect. b- bCORRECT✅✅b) bsupply bof bloanable bfunds
bright band bincreases binvestment bspending.
If bthe bJapanese bgovernment braised bits bbudget bdeficit, bthen bthe byen bwould
a) bdepreciate band bJapanese bnet bexports bwould brise.
b) bdepreciate band bJapanese bnet bexports bwould bfall.
c) bappreciate band bJapanese bnet bexports bwould brise.
d) bappreciate band bJapanese bnet bexports bwould bfall. b- bCORRECT✅✅d)
bappreciate band bJapanese bnet bexports bwould bfall.
If bthe bFrench bgovernment bincreases bits bexpenditures band breduces btaxes, bthen
bFrance's binterest brate
a) band bits bexchange brate brise.
b) brises band bits bexchange brate bfalls.
c) bfalls band bits bexchange brate brises.
d) band bits bexchange brate bfall. b- bCORRECT✅✅a) band bits bexchange brate brise.
Other bthings bthe bsame, bpeople bin bthe bU.S. bwould bwant bto bsave bmore bif bthe breal
binterest brate bin bthe bU.S.
WITH VERIFIED ANSWERS
In bthe bopen-economy bmacroeconomic bmodel, bif bforeign binterest brates brise band bthe
bU.S binterest brate bstays bthe bsame bthen, bU.S
a) bnet bcapital boutflow brises, bso bthe bsupply bof bdollars bin bthe bmarket bfor bforeign
bexchange bshifts bright.
b) bnet bcapital boutflow brises, bso bthe bdemand bfor bdollars bin bthe bmarket bfor bforeign
bexchange bshifts bright.
c) bnet bcapital boutflow bfalls, bso bthe bsupply bof bdollars bin bthe bmarket bfor bforeign
bexchange bshifts bleft.
d) bnet bcapital boutflow bfalls, bso bthe bdemand bfor bdollars bin bthe bmarket bfor bforeign
bexchange bshifts bleft. b- bCORRECT✅✅a) bnet bcapital boutflow brises, bso bthe bsupply
bof bdollars bin bthe bmarket bfor bforeign bexchange bshifts bright.
If bforeigners bwant bto bbuy bmore bU.S. bbonds, bthen bin bthe bmarket bfor bforeign-
currency bexchange bthe bexchange brate
a) band bthe bquantity bof bdollars btraded brises.
b) brises band bthe bquantity bof bdollars btraded bfalls.
c) bfalls band bthe bquantity bof bdollars btraded brises.
d) band bthe bquantity bof bdollars btraded bfalls. b- bCORRECT✅✅b) brises band bthe
bquantity bof bdollars btraded bfalls.
In bthe bopen-economy bmacroeconomic bmodel, bif binvestment bdemand bdecreases,
bthen
a) bthe bsupply bof bdollars bin bthe bmarket bfor bforeign-currency bexchange bshifts bleft.
b) bthe bsupply bof bdollars bin bthe bmarket bfor bforeign-currency bexchange bshifts bright.
c) bthe bdemand bfor bdollars bin bthe bmarket bfor bforeign-currency bexchange bshifts bleft.
d) bthe bdemand bfor bdollars bin bthe bmarket bfor bforeign-currency bexchange bshifts
bright. b- bCORRECT✅✅b) bthe bsupply bof bdollars bin bthe bmarket bfor bforeign-
currency bexchange bshifts bright.
Other bthings bthe bsame, bwhich bof bthe bfollowing bwould bcause bthe bexchange brate bto
brise?
a) bboth ban bincrease bin bthe binterest brate band ban bincrease bin bforeign bdemand bfor
bU.S. bgoods band bservices.
b) ban bincrease bin bthe binterest brate, bbut bnot ban bincrease bin bforeign bdemand bfor
bU.S. bgoods band bservices.
, c) ban bincrease bin bforeign bdemand bfor bU.S. bgoods band bservice, bbut bnot ban
bincrease bin bthe bU.S. binterest brate.
d) bneither ban bincrease bin bthe bU.S. binterest brate bnor ban bincrease bin bthe bdemand
bfor bU.S. bgoods band bservices. b- bCORRECT✅✅a) bboth ban bincrease bin bthe
binterest brate band ban bincrease bin bforeign bdemand bfor bU.S. bgoods band bservices.
A brise bin bthe bbudget bdeficit
a) bshifts bboth bthe bsupply bof bloanable bfunds bin bthe bmarket bfor bloanable bfunds band
bthe bsupply bof bdollars bin bthe bmarket bfor bforeign-currency bexchange bright.
b) bshifts bboth bthe bsupply bof bloanable bfunds bin bthe bmarket bfor bloanable bfunds band
bthe bsupply bof bdollars bin bthe bmarket bfor bforeign-currency bexchange bleft.
c) bshifts bboth bthe bdemand bfor bloanable bfunds bin bthe bmarket bfor bloanable bfunds
band bthe bdemand bfor bdollars bin bthe bmarket bfor bforeign-currency bexchange bright.
d) bshifts bboth bthe bdemand bfor bloanable bfunds bin bthe bmarket bfor bloanable bfunds
band bthe bdemand bfor bdollars bin bthe bmarket bfor bforeign-currency bexchange bleft. b-
bCORRECT✅✅b) bshifts bboth bthe bsupply bof bloanable bfunds bin bthe bmarket bfor
bloanable bfunds band bthe bsupply bof bdollars bin bthe bmarket bfor bforeign-currency
bexchange bleft.
An bincrease bin ba bcountry's bbudget bsurplus bshifts bits
a) bdemand bfor bloanable bfunds bright band bdecreases binvestment bspending.
b) bsupply bof bloanable bfunds bright band bincreases binvestment bspending.
c) bsupply bof bloanable bfunds bleft band bdecreases binvestment bspending.
d) bNone bof bthe babove bis bcorrect. b- bCORRECT✅✅b) bsupply bof bloanable bfunds
bright band bincreases binvestment bspending.
If bthe bJapanese bgovernment braised bits bbudget bdeficit, bthen bthe byen bwould
a) bdepreciate band bJapanese bnet bexports bwould brise.
b) bdepreciate band bJapanese bnet bexports bwould bfall.
c) bappreciate band bJapanese bnet bexports bwould brise.
d) bappreciate band bJapanese bnet bexports bwould bfall. b- bCORRECT✅✅d)
bappreciate band bJapanese bnet bexports bwould bfall.
If bthe bFrench bgovernment bincreases bits bexpenditures band breduces btaxes, bthen
bFrance's binterest brate
a) band bits bexchange brate brise.
b) brises band bits bexchange brate bfalls.
c) bfalls band bits bexchange brate brises.
d) band bits bexchange brate bfall. b- bCORRECT✅✅a) band bits bexchange brate brise.
Other bthings bthe bsame, bpeople bin bthe bU.S. bwould bwant bto bsave bmore bif bthe breal
binterest brate bin bthe bU.S.
