how to make cc

how to make cc

´╗┐International Economics, 10e (Krugman/Obstfeld/Melitz)
Chapter 17 (6) Output and the Exchange Rate in the Short Run

17.1 Determinants of Aggregate Demand in an Open Economy

1) How does an increase in the real exchange rate affect exports and imports?
A) Exports increase; imports decrease.
B) Exports decrease; imports increase.
C) Exports increase; imports change ambiguously.
D) Exports change ambiguously; imports decrease.
E) Exports increase; imports are constant.
Answer: C
Page Ref: 451-455
Difficulty: Easy

2) Which one of the following statements is MOST accurate?
A) In general, consumption demand rises by less than disposable income.
B) In general, consumption demand rises by more than disposable income.
C) In general, consumption demand rises by more than income.
D) In general, consumption demand rises by the same amount as disposable income rises.
E) In general, consumption demand rises are unrelated to disposable income rises.
Answer: A
Page Ref: 451-455
Difficulty: Easy

3) The current account balance is
A) the supply of a country's exports less the country's own demand for imports.
B) the demand for a country's exports plus the country's own demand for imports.
C) the country's own demand for imports less the demand for a country's exports.
D) the demand for a country's exports less the country's own demand for imports.
E) the country's federal reserves minus the national debt.
Answer: D
Page Ref: 451-455
Difficulty: Easy

4) The domestic currency price of a representative foreign expenditure basket is
A) P, the domestic price level.
B) E, the nominal exchange rate.
C) P times E, the domestic price level times the domestic price level.
D) P, the foreign price level.
E) P times E, the foreign price level times the nominal exchange rate.
Answer: E
Page Ref: 451-455
Difficulty: Easy
5) Current account is given by the equation:
A) CA = IM - EX (measured in terms of domestic output).
B) CA = IM -...

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