PS7 - Economics 102 Introductory Macroeconomics Spring 2004...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
I. Multiple Choice 1. Which one of the following decreases the price of the US dollar relative to the British pound? A) An increase in the supply of dollars. B) An increase in the demand for pounds. C) A decrease in the demand for dollars. D) All of the above. 2. Any transaction that causes foreign exchange to leave a country is a 3. A tariff imposed on imported shoes will cause the domestic price of shoes to __________ and the domestic production of shoes to ____________. 4. An increase in US imports from Mexico will __________ the supply of dollars and __________ the demand for pesos 5. Japan imports over 90% of its consumption of oil. If the price of oil increases, Japan’s A) aggregate demand curve shifts to the right. B) aggregate supply curve shifts to the right. C) aggregate supply curve shifts to the left. D) aggregate planed expenditures increase. 6. A US firm builds a factory in South Africa. This will be entered as Economics 102 Introductory Macroeconomics Spring 2004, Professor J. Wissink Problem Set 7 Due on May 6 no later than noon (that is, 12:00pm) DROP IN THE BOXES OUTSIDE THE DOORS OF YOUR TA’S OFFICES.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
II. Short Questions 1. Explain how the following situations affect the United States' balance of payments. a. A U.S. defense contractor sells its consulting services to a company in France. b. A Belgian investor buys securities from a US firm.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern