Suppose the government share of GDP is 20 percent and the consumption, investment, and net export shares o GDP are 60, 15, and 5 percent, respectively. If the dollar exchange rate increases, then we would expect the government share of GDP to increase. the interest rate to decrease. the interest rate to increase. the government share of GDP to decrease. the net export share of GDP to increase. O O

Suppose the government share of GDP is 20 percent and the consumption, investment, and net export shares o GDP are 60, 15, and 5 percent, respectively. If the dollar exchange rate increases, then we would expect the government share of GDP to increase. the interest rate to decrease. the interest rate to increase. the government share of GDP to decrease. the net export share of GDP to increase. O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the U.S. interest rate falls relative to other countries' interest rates, then the exchange rate O a. rises only if it was the foreign interest rate that changed. O b. falls only if it was the U.S. interest rate that changed. O c. definitely rises. O d. definitely falls. O e. does not change.
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QUESTION 3 Y₂₁ 0000 ½ k Real GDP Y S+M S la In the above private open economy exports are O Independent of dependent of independent of inversely related to inversely related to directly related to directly related to; independent of and imports are domestic GDP:
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7 Please answer all??
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If U.S. net exports are negative, then net capital outflow is A. negative, so American assets bought by foreigners are greater than foreign assets bought by Americans. B. positive, so foreign assets bought by Americans are greater than American assets bought by foreigners. C. positive, so American assets bought by foreigners are greater than foreign assets bought by Americans. D. negative, so foreign assets bought by Americans are greater than American assets bought by foreigners.
If all government budgets are balanced, and S is greater than I, thenQuestion 2 Select one:A. the financial account must be negative.B. the net international investment position must be positive.C. the net international investment position must be negative.D. the financial account must be positive.
. If a US resident spends $1,000 to buy €880 worth of French burgundy wine, the US balance of payments shows… a) current acct imports of -$1,000 and capital acct exports of +€880 b) current acct imports of -€880 and capital acct exports of -$1,000 c) current acct imports of -$1,000 and capital acct exports of +$1,000 d) capital acct exports of +$1,000 and capital acct imports of -$1,000.
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Which is an incorrect statement about the balance of payments accounts? O A. Any transaction involving a flow of funds out of a country is a negative item in the country's balance of payments. B. The balance of payments accounts consist of the current account and the financial account. c. The financial account measures a country's trade in currently produced goods and services. O D. Any transaction involving a flow of funds into a country is a positive item in the country's balance of payments.
18. A reduction in the marginal propensity to import will cause A) the ZZ line to become flatter and a given change in government spending (G) to have a larger effect on domestic output. B) the ZZ line to become flatter and a given change in government spending (G) to have a smaller effect on domestic output. C) the ZZ line to become steeper and a given change in government spending (G) to have a larger effect on domestic output. D) the ZZ line to become steeper and a given change in government spending (G) to have a smaller effect on domestic output.