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Quiz

Seminar 11

Gio Gobronidze 12 questions

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Questions in this quiz (12)

  1. 1Which of the following represents the demand for domestic goods?
    1. AA) C + I + G
    2. BB) C + I + G + X
    3. CC) C + I + G - εIM
    4. DD) C + I + G + X + εIM
    5. EE) C + I + G + X — IM/ε
  2. 2The quantity of imports will increase when there is
    1. AA) a reduction in the real exchange rate.
    2. BB) an increase in domestic output.
    3. CC) an increase in foreign output.
    4. DD) all of the above
    5. EE) none of the above
  3. 3 Exports will decrease when there is
    1. AA) an increase in the real exchange rate.
    2. BB) an increase in domestic output.
    3. CC) an increase in foreign output.
    4. DD) all of the above
    5. EE) none of the above
  4. 4 Which of the following occurs when the goods market is in equilibrium?

    1. AA) domestic output (Y) equals the demand for domestic goods.
    2. BB) Y equals the domestic demand for goods.
    3. CC) Y equals the domestic demand for domestic goods.
    4. DD) net exports equals 0.
    5. EE) demand for domestic goods equals the domestic demand for goods
  5. 5Assume the Marshall-Lerner condition holds. Which of the following will cause a reduction in net
    exports?
    1. AA) a reduction in government spending
    2. BB) a reduction in investment
    3. CC) an increase in foreign output
    4. DD) an increase in the real exchange rate
    5. EE) all of the above
  6. 6Which of the following will occur in a small country with a high marginal propensity to import?
    1. AA) changes in government spending will cause large changes in output.
    2. BB) changes in government spending will cause large changes in the trade balance.
    3. CC) a depreciation will cause only small changes in the trade balance.
    4. DD) there is no combination of policies that can eliminate the trade deficit.
    5. EE) all of the above
  7. 7For this question, assume that the J-curve effect exists. Which of the following will occur after a
    real depreciation?
    1. AA) the trade deficit will improve temporarily before it worsens.
    2. BB) the trade deficit will worsen temporarily before it improves.
    3. CC) the real exchange rate will fall temporarily before it rises.
    4. DD) the real exchange rate will rise temporarily before it falls.
    5. EE) none of the above
  8. 8Policy coordination is difficult because each country
    1. AA) prefers to be the one to increase demand.
    2. BB) prefers to be the one to appreciate its currency
    3. CC) prefers that other countries increase their demand.
    4. DD) prefers to be the one to increase taxes.
    5. EE) prefers that other countries increase taxes.
  9. 9 Which of the following is true when a country is experiencing a trade surplus (NX > 0)?
    1. AA) demand for domestic goods is equal to the domestic demand for goods
    2. BB) demand for domestic goods is greater than the domestic demand for goods
    3. CC) demand for domestic goods is less than the domestic demand for goods
    4. DD) a budget surplus exists
  10. 10We will generally observe that the more open an economy
    1. AA) the larger the effect of fiscal policy on output and the larger the effect of fiscal policy on the trade
      position.
    2. BB) the larger the effect of fiscal policy on output and the smaller the effect of fiscal policy on the trade
      position.
    3. CC) the smaller the effect of fiscal policy on output and the larger the effect of fiscal policy on the trade
      position.
    4. DD) the smaller the effect of fiscal policy on output and the smaller the effect of fiscal policy on the
      trade position.

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Description
Quiz on Seminar 11, created by Gio Gobronidze on 31/05/2016.
Language
English
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