Quiz_296 - 76 A B C D 76 Answer D Diff:2 PageRef:989-990\/615-616 Topic ExchangeRates LearningOutcome Macro1

Quiz_296 - 76 A B C D 76 Answer D Diff:2...

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76) An increase in capital inflows willA) increase capital outflows.B) increase net foreign investment.C) decrease capital outflows.D) increase the value of the domestic currency.Answer: D76)Diff: 2Page Ref: 989-990/615-616Topic: Exchange RatesLearning Outcome: Macro 15: Describe how government policies and exchange rates affect open economymacroeconomicsAACSB: Reflective Thinking77) If the dollar appreciates, how will aggregate demand in the United States be affected?77)Diff: 1Page Ref: 990-991/616-617Topic: Currency Appreciation and DepreciationLearning Outcome: Macro 15: Describe how government policies and exchange rates affect open economymacroeconomicsAACSB: Analytic SkillsTRUE/FALSE. WriteʹTʹif the statement is true andʹFʹif the statement is false.78) The relative price of a countryʹs goods and services in terms of foreign goods and services is thereal exchange rate.78)Answer:TrueFalseDiff: 1Page Ref: 996/622Topic: Real Exchange RatesLearning Outcome: Macro 15: Describe how government policies and exchange rates affect open economymacroeconomicsAACSB: Reflective Thinking79) A real appreciation of the dollar is caused by either a nominal appreciation of the dollar, a rise inthe foreign price level, or a fall in the U.S. price level.79)Answer:TrueFalseDiff: 2Page Ref: 990-991/616-617Topic: Currency Appreciation and DepreciationLearning Outcome: Macro 15: Describe how government policies and exchange rates affect open economymacroeconomicsAACSB: Reflective Thinking80) A rise in the dollar price of the Chinese yuan signals an appreciation of the yuan and adepreciation of the dollar.
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