6.According to the open economy macroeconomic model, which of the following statements is (are) correct?
(x)The usual effects of capital flight include a rightward shift of demand in the loanable funds marketand a rightward shift of the NCO curve,
(y)Capital flight typically causes a decrease in the domestic interest rate and an increase in NCO.
(z)Capital flight typically causes the real exchange rate of the domestic currency to depreciate because capital flight causes an increase in the supply of the currency in foreign currency exchange markets.
A.(x), (y) and (z)B. (x) and (y) only C.(x) and (z) only D.(y) and (z) onlyE.(x)only
According to the open-economy macro model, which of the following causes the real exchange rate of the United States dollar to depreciate?
(x)the United States government decreases the budget deficit
(y)the United States eliminates import quotas and tariffs.
(z)capital flight from the United States
A.(x), (y) and (z) B. (x) and (y) onlyC.(x) and (z) only D.(y) and (z) only E.(y) only
In: Economics
6. According to the open economy macroeconomic model, which of
the following statements is (are) correct?
(x) The usual effects of capital flight include a rightward shift
of demand in the loanable funds market and a rightward shift of the
NCO curve,
(y) Capital flight typically causes a decrease in the domestic
interest rate and an increase in NCO.
(z) Capital flight typically causes the real exchange rate of the
domestic currency to depreciate because capital flight causes an
increase in the supply of the currency in foreign currency exchange
markets.
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 macro model, which of the
following causes the real exchange rate of the United States dollar
to depreciate?
(x) the United States government decreases the budget deficit
(y) the United States eliminates import quotas and tariffs.
(z) capital flight from the United States
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only
In: Economics
The following is a free response question to be used as practice for future exams. You can complete the assignment in this document, using the drawing tools in Word (or any photo editing program) or print this document, and complete the activity by hand, submitting a scan or photo of your work. When you are done, submit the assignment for grading by your instructor. This question will be graded out of 6 points.
1. The table below shows the production possibilities curves for two countries: China and the United States. Using equal amounts of resources, China can produce 200 computers or 400 cars, whereas the United States can produce 200 computers or 1,200 cars.
|
CARS |
COMPUTERS |
|
|
United States |
1200 |
200 |
|
China |
400 |
200 |
(a) Calculate the opportunity cost of a computer in China.
(b) If the two countries specialize and trade, which country will import computers? Explain.
(c) If the terms of trade are 4 cars for 1 computer, would trade be advantageous for each of the following?
(i) United States
(ii) China
(d) If productivity in China doubles, which country has the comparative advantage in the production of cars?
In: Economics
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S.
| China Production Possibilities | ||||||
| Product | A | B | C | D | E | F |
| Apparel | 50,000 | 40,000 | 30,000 | 20,000 | 10,000 | 0 |
| Chemicals(tons) | 0 | 20 | 40 | 60 | 80 | 100 |
| U.S. Production Possibilities | ||||||
| Product | R | S | T | U | V | W |
| Apparel | 150,000 | 120,000 | 90,000 | 60,0000 | 30,000 | 0 |
| Chemicals(tons) | 0 | 30 | 60 | 90 | 120 | 150 |
Instructions: Enter your answers as whole numbers.
a. Are comparative-cost conditions such that the two countries should specialize?
(Click to select) Yes No
If so, what product should each produce?
China should produce (Click to select) chemicals apparel .
The United States should produce (Click to select) apparel chemicals .
b. What is the total gain in apparel and chemical output that would result from such specialization?
Apparel:
Chemicals:
c. What are the limits of the terms of trade?
units of apparel for 1 ton of chemicals and units of apparel for 2 tons of chemicals.
Suppose that the actual terms of trade are 1,000 units of apparel for 1½ tons of chemicals and that 20,000 units of apparel are exchanged for 30 tons of chemicals. What are the gains from specialization and trade for each nation?
(Click to select) The United States China has a ??? gain of units of apparel.
(Click to select) China The United States has a ??? gain of tons of chemicals.
In: Economics
In 2-4 paragraphs. Please discuss what roles that organizations such as United Nations or local governments are playing in diffusing terrorism in United States
Please provide reference/article/or links related to the issue at hand
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A random sample of 5 states gave the following areas (in 1000 square miles; same data as Problem 2-38, incidentally): 147, 84, 24, 85, 159 a) Find the 95% confidence interval for the mean area for all 50 states in the United States. 13. A real estate agent wants to estimate the average selling price of houses in a suburb of Atlanta. It randomly samples 25 recent sales and calculates the average price = $148,000 and the standard deviation s = $62,000. a) Calculate a 95% confidence interval for the mean of all recent selling prices. 12. A random sample of 5 states gave the following areas (in 1000 square miles; same data as Problem 2-38, incidentally): 147, 84, 24, 85, 159 a) Find the 95% confidence interval for the mean area for all 50 states in the United States.
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