Question 1

Countries that have a trade surplus have a:

Accepted Answer

A)   positive net capital outflow.
B)   positive net capital inflow.
C)   negative net capital outflow.
D)   positive foreign direct investment.E) C) and D)
F) B) and C)

Question 2

The United States' high trade deficit must be balanced by:

Accepted Answer

A)   net capital inflows.
B)   high net capital outflows.
C)   low net capital outflows.
D)   None of these are true.E) A) and B)
F) None of the above

Question 3

Monetary policy is most effective when the exchange rate is:

Accepted Answer

A)   fixed.
B)   floating.
C)   on a managed float.
D)   pegged to another country's currency.E) A) and B)
F) None of the above

Question 4

When a country imports more than it exports, it has a:

Accepted Answer

A)   trade deficit.
B)   trade surplus.
C)   zero trade balance.
D)   current account deficit.E) A) and C)
F) None of the above

Exam 18: Open-Marketmacroeconomics

Countries that have a trade surplus have a:

Correct Answer
verified

When a country imports more than it exports, it has a:

Correct Answer
verified

Monetary policy is most effective when the exchange rate is:

Correct Answer
verified

The United States' high trade deficit must be balanced by:

Correct Answer
verified

Exam 18: Open-Marketmacroeconomics

Countries that have a trade surplus have a:

Correct AnswerverifiedShow Answer

When a country imports more than it exports, it has a:

Correct AnswerverifiedShow Answer

Monetary policy is most effective when the exchange rate is:

Correct AnswerverifiedShow Answer

The United States' high trade deficit must be balanced by:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified