Test Bank Solution Manual for Macroeconomics - Balance and Accounts 100% Pass
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Course
Macroeconomics
Institution
Macroeconomics
Test Bank Solution Manual for Macroeconomics - Balance and Accounts 100% Pass
For a country such as France which of the following statements is always true? - Answers The balance of payments is zero.
Which one of the following does NOT describe balance of trade? - Answers Balance of trade is equa...
Test Bank Solution Manual for Macroeconomics - Balance and Accounts 100% Pass
For a country such as France which of the following statements is always true? - Answers The balance of
payments is zero.
Which one of the following does NOT describe balance of trade? - Answers Balance of trade is equal to
the sum of current account balance and financial account balance
Using the data calculate the balance on current account for this economy.
Current Account Value Balance
Exports of Goods $900
Imports of Goods 1700
Balance of Trade −800
Exports of Services 350
Imports of Services -300
Balance of Services 50
Income Received on Investments 200
Income Payments on Investments -600
Net Income on Investments −400
Net Transfers -100 - Answers The value of the current account is: $−1250
-800+50-400-100 =-1250
Consider the demand for U.S. dollars in exchange for British pounds. Which of the following will not
increase the foreign currency demand for the dollar? - Answers Currency traders who believe that the
value of the dollar in the future will be less than its value today.
The United States produces computers and sells them to Russia. At the same timeRussia produces cars
and sells them to the United States. Suppose there is an appreciation in the dollar. This will cause: -
Answers An increase in imports into the United Statesand a decrease in exports toRussia, which will
cause a decrease in aggregate demand and real GDP.
Suppose that currency traders expect that the value of ruble will fall in the future. How will this will
affect the demand and supply of ruble in the foreign exchange market? - Answers Demand for rubles
will decrease and supply of rubles will increase
, Which of the following events would cause the supply curve in the foreign exchange market to shift? -
Answers Changes in expectations of the future value of foreign currencies.
Increase in foreign interest rates.
Increased demand for foreign goods and services.
Consider the following conditions
The exchange rate between the U.S. dollar and the British pound is pound£1.1=$1.
The U.S. price level is 100 and the British price level is 102. - Answers The real exchange rate equals
1.07.
Ron was vacationing in France, when his camera was stolen. As he walked into a camera store, Ron
noticed that camera prices were in euros. If Ron was willing to pay $200 for a new digital camera and
the exchange rate is $0.95 per euro, how much will Ron be paying in euros? - Answers Ron will be paying
210.53 euros for the camera.
200 / .95 =210.53
Using the information given calculate private saving, public saving, and national saving.
Category Value
Consumption $ 1000
Government spending 500
Taxes 100
Net Exports -400
Investment 200
GDP 1,300 - Answers Private saving is 200
Private saving=National income−Consumption−Taxes
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