Question

 13. If the economy experiences unexpected inflation then a. debtors would gain at the expense of creditors. b. both debtors and creditors would have increased real wealth. c. both debtors and creditors would have reduced real wealth d. creditors would gain at the expense of debtors.

 14. Which of the following is correct? a. The U.S. is currently running a trade deficit and is a net creditor to the rest of the world b. The U.S. is currently running a trade deficit and is a net debtor to the rest of the world c. The U.S. is currently running a trade surplus and is a net creditor to the rest of the world d. The U.S. is currently running a trade surplus and is a net debtor to the rest of the world

 15. If country has $300 million of domestic investment and $260 million of national saving then net capital outflow are ___________________ and the country is running a trade __________________ a. negative; deficit b. negative; surplus c. positive; surplus d. positive; deficit

 16. An appreciation of the U.S. real exchange rate induces U.S. consumers to buy a. fewer domestic goods and fewer foreign goods. b. more domestic goods and fewer foreign goods. c. fewer domestic goods and more foreign goods. d. more domestic goods and more foreign goods.

Answer 1