Fill in order details

  • Submit your instructions
    to writers for free!

Chat with the writer

  • Chat with preferred expert writers
  • Request a preview of your paper
    from them for free

Editing

  • Project edited by the quality evaluation department

Download Your Completed Project

  • Download the completed project from your account or have it sent to your email address

1 Suppose a comparable phone costs 500 USD in the U.S. and 300 EUR in Germany. If the nominal exchange rate is 0.8 EUR per 1 USD, then the real exchange rate in terms of how many German phones can be traded for one U.S. phone is: A. 1.33. B. 1.25. C. 0.60. D. 0.80. 2. The value of net exports is also the value of: A. net saving. B. national saving. C. net investment. D. the excess of national saving over domestic investment. 3. In the 1990s, a presidential candidate in the U.S. proposed tariffs on Japanese, Chinese, and other South American imports. Assume that the U.S. is a small open economy, and use the model of the real exchange rate shown in the diagram above to explain what happens to the following: a.) The real exchange rate b.) The trade balance c.) Imports d.) Exports 4. A trade deficit can be financed in all of the following ways except by: A. borrowing from domestic lenders. B. selling foreign assets owned by domestic residents to foreigners. C. selling domestic assets to foreigners. D. borrowing from foreigners. 5. If the real exchange rate is high, foreign goods: A. are relatively cheap and domestic goods are relatively expensive. B. are relatively expensive and domestic goods are relatively cheap. C. and domestic goods are both relatively expensive. D. and domestic goods are both relatively cheap. 6. If domestic spending exceeds output, we ______ the difference. A. export B. import C. import D. export 7. Assume that in a small open economy where full employment always prevails, national saving is 300. a. If domestic investment is given by I = 400 – 20r, where r is the real interest rate in percent, what would the equilibrium interest rate be if the economy were closed? b. If the economy is open and the world interest rate is 10 percent, what will investment be? c. What will the current account surplus or deficit be? What will net capital outflow be? HTML Editor 8. What is the price of a pair of shoes in Paris if the price in the U.S. is 400 USD and the exchange rate is 1 USD = 0.75 EUR? A. 53 EUR B. 30 EUR C. 533 EUR D. 300 EUR 9. An “open” economy is one in which: A. government spending exceeds revenues. B. the national interest rate equals the world interest rate. C. the level of output is fixed. D. there is trade in goods and services with the rest of the world. 10. If net capital outflow is positive, then: A. exports must be negative. B. the trade balance must be positive. C. exports must be positive. D. the trade balance must be negative. 11. If domestic saving exceeds domestic investment, then net exports are ______ and net capital outflows are ______. A. positive; negative B. negative; negative C. positive; positive D. negative; positive

1. Suppose a comparable phone costs 500 USD in the U.S. and 300 EUR in Germany. If the nominal exchange rate is 0.8 EUR per 1 USD, then the real exchange rate in terms of how many German phones can be traded for one U.S. phone is:
A. 1.33.
B. 1.25.
C. 0.60.
D. 0.80.
2. The value of net exports is also the value of:
A. net saving.
B. national saving.
C. net investment.
D. the excess of national saving over domestic investment.
3. In the 1990s, a presidential candidate in the U.S. proposed tariffs on Japanese, Chinese, and other South American imports. Assume that the U.S. is a small open economy, and use the model of the real exchange rate shown in the diagram above to explain what happens to the following: a.) The real exchange rate b.) The trade balance c.) Imports d.) Exports
4. A trade deficit can be financed in all of the following ways except by:
A. borrowing from domestic lenders.
B. selling foreign assets owned by domestic residents to foreigners.
C. selling domestic assets to foreigners.
D. borrowing from foreigners.
5. If the real exchange rate is high, foreign goods:
A. are relatively cheap and domestic goods are relatively expensive.
B. are relatively expensive and domestic goods are relatively cheap.
C. and domestic goods are both relatively expensive.
D. and domestic goods are both relatively cheap.
6. If domestic spending exceeds output, we ______ the difference.
A. export
B. import
C. import
D. export
7. Assume that in a small open economy where full employment always prevails, national saving is 300.
a.
If domestic investment is given by I = 400 – 20r, where r is the real interest rate in percent, what would the equilibrium interest rate be if the economy were closed?
b.
If the economy is open and the world interest rate is 10 percent, what will investment be?
c.
What will the current account surplus or deficit be? What will net capital outflow be?
HTML Editor
8. What is the price of a pair of shoes in Paris if the price in the U.S. is 400 USD and the exchange rate is 1 USD = 0.75 EUR?
A. 53 EUR
B. 30 EUR
C. 533 EUR
D. 300 EUR
9. An “open” economy is one in which:
A. government spending exceeds revenues.
B. the national interest rate equals the world interest rate.
C. the level of output is fixed.
D. there is trade in goods and services with the rest of the world.
10. If net capital outflow is positive, then:
A. exports must be negative.
B. the trade balance must be positive.
C. exports must be positive.
D. the trade balance must be negative.
11. If domestic saving exceeds domestic investment, then net exports are ______ and net capital outflows are ______.
A. positive; negative
B. negative; negative
C. positive; positive
D. negative; positive

What our customers say
_____

Ishita M.Ishita M.
Great Job! Thank you so much for your work. You got it done faster than I imagined and everything is perfect. Will definitely be using you again!
Megan J.Megan J.
"As a wife, mother, and full-time student, I was struggling to try to go back to school and take care of my responsibilities. Sometimes you just need a little help, and I appreciate all the help I have gotten from Academic Research Bureau. My papers are on-time and the writers are easy to work with. Thanks for the support!"
Rajab M.Rajab M.
Universitywritingservices.com has saved me a lot of time. I was tired of taking the same classes many times over again. As an ESL student, my professors were taking points off of my assignments for my grammar mistakes. It made it very hard to feel encouraged to continue with my studies. Thankful for having found an answer for better grades."
Frank N.Frank N.
As a working student, I just really don't have the time to write paper after paper and complete assignment after assignment. Working full-time and going to school was nearly impossible until I was able to feel comfortable with the writers on this site. They make me feel secure enough to trust them with my papers. While I'm busy with life, they are busy writing my papers. They always do an outstanding job!
Courtney B.Courtney B.
Thank you! You were really patient with me and my needs. This was my first time using you guys, however, I will definitely be using you again!
John H.John H.
I cannot tell you enough how amazing your company is! Your writers are superb, on time, excellent content, so very thankful you reached out to me that day! Lifesaver for sure! Couldn’t be happier with the results I’ve gotten from my first 2 papers with you, I have 4 papers left to go and I’ll be using your company for them all!
Rebecca T.Rebecca T.
After I ordered a dissertation from your writing service, the first paper that I was given did not met my professor’s demand. I set the paper on revision and the writer made the revision for free meeting all my requirements and I was very satisfied
Thomas R.Thomas R.
I was shocked by how your writers managed to deliver my paper on time, and I was among the best in our class in that paper. Thank you so much and I will never hesitate to use you
error: protected!!