CH13 ANSWERS TO SELECTED PROBS

CH13 ANSWERS TO - C hapter 13 A nswers to Selected Reinforcing the Concepts Questions Posted with Brief Review 1 a When an American art professor

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Chapter 13: Answers to Selected “Reinforcing the Concepts” Questions Posted with “Brief Review” 1. a. When an American art professor spends the summer touring museums in Europe, he spends money buying foreign goods and services, so U.S. exports are unchanged, imports increase, and net exports decrease. b. When students in Paris flock to see the latest movie from Hollywood, foreigners are buying a U.S. good, so  U.S. exports rise, imports are unchanged, and net exports increase. c. When your uncle buys a new Volvo, an American is buying a foreign good, so U.S. exports are unchanged,  imports rise, and net exports decline. d. When the student bookstore at Oxford University sells a pair of Levi's 501 jeans, foreigners are buying U.S.  goods, so U.S. exports increase, imports are unchanged, and net exports increase. e. When a Canadian citizen shops in northern Vermont to avoid Canadian sales taxes, a foreigner is buying U.S.  goods, so U.S. exports increase, imports are unchanged, and net exports increase. 2. a. When an American buys a Sony Walkman, there is a decrease in net exports. b. When an American buys a share of Sony stock, there is an increase in net capital outflow. c.
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This note was uploaded on 09/29/2011 for the course ECO 2315 taught by Professor Bishop during the Fall '09 term at Texas State.

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CH13 ANSWERS TO - C hapter 13 A nswers to Selected Reinforcing the Concepts Questions Posted with Brief Review 1 a When an American art professor

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