In: Economics
In the open economy macroeconomic model, which of the following
is included in the supply of U.S. dollars in the market for
foreign-currency?
(x) Nebraska Life, a U.S. life insurance company, wants to buy a
Japanese government bond.
(y) ABC Securities, a U.S. stock brokerage, wants to purchase stock
issued by a French corporation.
(z) Tony, a U.S. citizen, wants to hold more currency in case of
emergencies.
A. (x), (y) and (z) B. (x) and (y) only
C. (x) and (z) only D. (y) and (z) only
E. (x) only
According to the open-economy macroeconomic model, which of the
following statements is (are) correct?
(x) In the open-economy macroeconomic model, if for some reason
foreign citizens want to purchase more U.S. goods and services at
each exchange rate, then the demand for dollars in the market for
foreign-currency exchange shifts right.
(y) If foreign citizens want to buy fewer U.S. bonds, then the
demand for U.S. dollars in the market for foreign currency exchange
will shift to the right
(z) If the real exchange rate for the dollar is below the
equilibrium level, the quantity of dollars supplied in the market
for foreign-currency exchange is less than the quantity demanded
and the dollar will appreciate.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only
which of the following statements is (are) correct?
(x) A trade policy is a government policy that directly influences
the quantity of goods and services that a country imports or
exports.
(y) An “import quota”.is a limit on the quantity of a good that can
be produced abroad and sold domestically.
(z) A tax on imported goods is called a tariff.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only
In the open economy macroeconomic model, which of the following is included in the supply of U.S. dollars in the market for foreign-currency?
(x)
Nebraska Life, a U.S. life insurance company, wants to buy a
Japanese government bond.
(y) ABC Securities, a U.S. stock brokerage, wants to purchase stock
issued by a French corporation.
(z) Tony, a U.S. citizen, wants to hold more currency in case of
emergencies.
A. (x), (y) and (z)
B. (x)
and (y) only - this is the right answer. Z represents a domestic
transaction
C. (x) and (z) only
D. (y)
and (z) only
E. (x) only
According to the open-economy macroeconomic model, which of the
following statements is (are) correct?
(x) In the open-economy macroeconomic model, if for some reason
foreign citizens want to purchase more U.S. goods and services at
each exchange rate, then the demand for dollars in the market for
foreign-currency exchange shifts right.
(y) If foreign citizens want to buy fewer U.S. bonds, then the
demand for U.S. dollars in the market for foreign currency exchange
will shift to the right
(z) If the real exchange rate for the dollar is below the
equilibrium level, the quantity of dollars supplied in the market
for foreign-currency exchange is less than the quantity demanded
and the dollar will appreciate.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only - this is teh right answer. In situation Y, the
demand curve will shift leftwards and not rightwards
D. (y) and (z) only
E. (x) only
which
of the following statements is (are) correct?
(x) A trade policy is a government policy that directly influences
the quantity of goods and services that a country imports or
exports.
(y) An “import quota”.is a limit on the quantity of a good that can
be produced abroad and sold domestically.
(z) A tax on imported goods is called a tariff.
A. (x), (y) and (z) - all the statements are correct
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only