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PAGE 2140 ? Chapter 32/A Macroeconomic Theory of the Open Economy
Chapter 32/A Macroeconomic Theory of the Open Economy ? PAGE 2129
PAGE 2128
Chapter 32
A Macroeconomic Theory of the Open Economy
TRUE/FALSE
1. Over the past two decades, the United States has persistently exported more goods and services than it has imported.
ANS: F DIF: 1 REF: 32-1 NAT: Analytic
LOC: International trade and finance TOP: U.S. trade MSC: Analytical
2. Over the past two decades the U.S. has persistently had trade deficits.
ANS: T DIF: 1 REF: 32-1 NAT: Analytic
LOC: International trade and finance TOP: U.S. trade MSC: Definitional
3. The primary focus of the open-economy macroeconomic model is the determination of GDP and the price level.
ANS: F DIF: 1 REF: 32-1 NAT: Analytic
LOC: International trade and finance TOP: Open-economy macroeconomic model
MSC: Definitional
4. In an open economy, the supply of loanable funds comes from national saving.
ANS: T DIF: 1 REF: 32-1 NAT: Analytic
LOC: International trade and finance TOP: Market for loanable funds
MSC: Definitional
5. In an open economy, the demand for loanable funds comes from both domestic investment and net capital outflow.
ANS: T DIF: 1 REF: 32-1 NAT: Analytic
LOC: International trade and finance TOP: Market for loanable funds
MSC: Definitional
6. The purchase of a capital asset adds to the demand for loanable funds only if that asset is a domestic one.
ANS: F DIF: 1 REF: 32-1 NAT: Analytic
LOC: International trade and finance TOP: Market for loanable funds
MSC: Definitional
7. A drop in the French real interest rate reduces French net capital outflow.
ANS: F DIF: 2 REF: 32-1 NAT: Analytic
LOC: International trade and finance TOP: Net capital outflow
MSC: Applicative
8. In the open-economy macroeconomic model, at the equilibrium real interest rate, the amount that people (including government) want to save exactly balances desired domestic investment.
ANS: F DIF: 1 REF: 32-1 NAT: Analytic
LOC: International trade and
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