ccer宏观作业2.pdfVIP

Intermediate Macroeconomics, Class No.2 Fall 2008 Homework 2 Due 10/26/2008 Multiple choice questions (2 points each) 1. A countrys exports may be written as equal to: A) GDP minus consumption minus investment minus government spending. B) GDP minus consumption of domestic goods and services minus investment of domestic goods and services minus government purchases of domestic goods and services. C) imports. D) GDP minus imports. 2. If net capital outflow is positive, then: A) exports must be positive. B) exports must be negative. C) the trade balance must be positive. D) the trade balance must be negative. 3. When exports exceed imports, all of the following are true except: A) net capital outflows are positive. B) net exports are positive. C) domestic investment exceeds domestic saving. D) domestic output exceeds spending. 4. In a small open economy, if domestic saving exceeds domestic investment, then the extra saving will be used to: A) make loans to the government. B) make loans to foreigners. C) repay the national debt. D) repay loans to the Federal Reserve. 5. A 搒mall_ economy is one in which the: A) level of output is fixed. B) price level is fixed. C) domestic interest rate equals the world interest rate. D) domestic saving is less than domestic investment. Page 1 6. An increase in the trade deficit of a small open economy could be the result of: A) an increase in taxes. B) an increase in government spending. C) a decrease in the world interest rate. D) the expiration of an investment tax-credit provision. 7. In a small open economy, policies that increase: A) investment tend to cause a tra