Net exports and the IS curve: Consider the way in which net exports depend on the...

Net exports and the IS curve: Consider the way in which net exports depend on the real exchange rate. Does the dependence of net exports on the real exchange rate make the IS curve steeper or flatter? What is the economic interpretation of this result?

Expert Solution

Rahul Sunny answered 2 years ago

Consider the factors that affect the net exports and the net capital outflow and discuss why...

Consider the factors that affect the net exports and the net capital outflow and discuss why these two magnitudes are equal. If you consider that Turkey, has a low savings rate, which variable is to change and how would this affect the nominal and real exchange rates?

Does the dependence of net exports on the real exchange rate make the IS curve steeper...

Does the dependence of net exports on the real exchange rate make the IS curve steeper or flatter?

5. Which of the following factors affects a country's exports, imports, and net exports? (x) international...

5. Which of the following factors affects a country's exports, imports, and net exports? (x) international trade policy (y) consumer tastes at home and abroad (z) prices of domestic and foreign goods A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (x) only 6. Suppose the value of the goods and services that Australia purchases from the U.S. are less than the value of goods and services that...

(a) define net exports and net foreign investment (b) explain how and why net exports and...

(a) define net exports and net foreign investment (b) explain how and why net exports and net foreign investment are related (c) Suppose that real interest rates decrease in the rest of the world,but not in Hong Kong. Explain how this would be likely to affect net foreign investment in Hong Kong?

3. Which statement is consistent with negative net exports? a. Net capital outflow is positive,...

3. Which statement is consistent with negative net exports? a. Net capital outflow is positive, so foreign assets bought by Canadians are greater than Canadian assets bought by foreigners. b. Net capital outflow is positive, so Canadian assets bought by foreigners are greater than foreign assets bought by Canadians. c. Net capital outflow is negative, so foreign assets bought by Canadians are greater than Canadian assets bought by foreigners. d. Net capital outflow is negative, so...

1. If there are no transfers or net? investment, it must be true that net exports...

1. If there are no transfers or net? investment, it must be true that net exports are ( greater than / equal to / less than / not related to ) net foreign investment 2. In an open? economy, an expansionary fiscal policy on the part of the government of Japan will? cause: A. an increase in interest rates in Japan which may have a larger crowding out effect than in a closed economy. B. an increase in interest rates...

As the price level increases, the aggregate demand curve will shift which way?

6. If domestic saving is less than domestic investment, then net exports are ______ and net...

6. If domestic saving is less than domestic investment, then net exports are ______ and net capital outflows are _____. A. positive; positive B. positive; negative C. negative; negative D. negative; positive 7. In a small, open economy, if domestic saving exceeds domestic investment, then the extra saving will be used to A. make loans to the domestic government B. make loans to foreigners C. repay the national debt D. repay loans to the federal reserve 8. A trade deficit...

how does inflation and appreciation effect net exports

Describe how the following transactions would affect U.S. exports, imports, and net exports: Students in Prague...

Describe how the following transactions would affect U.S. exports, imports, and net exports: Students in Prague flock to see the latest movie from Hollywood. Mrs. Jones in Philadelphia buys a new Volvo. The student bookstore at Oxford University in England sells a copy of a U.S. printed/authored textbook A Canadian citizen shops at a store in northern Vermont to avoid Canadian sales taxes. An American art professor spends the summer touring museums in Europe. Please do not copy one of...

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