CH14 SAMPLE Qs

CH14 SAMPLE Qs - Chapter 14 Sample Questions 1. In an open...

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Chapter 14 Sample Questions 1. In an open economy, the source of supply of loans in the loanable funds market is ________, and the source of demand is ________. a. Investment and Net Capital Outflow, National Saving b. Investment, National Saving and Net Capital Outflow c. National Saving and Net Capital Outflow, Investment d. National Saving, Investment and Net Capital Outflow 2. If Net Capital Outflow increases, the ________ of loans will increase, causing the real domestic interest rate to ________. a. demand, rise b. demand, drop c. supply, rise d. supply, drop 3. In the Foreign Currency Exchange Market, the supply of dollars comes from ________, and the demand for dollars comes from ________. a. National Saving and Net Capital Outflow, Investment c. Net Exports, Investment b. National Saving, Investment and Net Capital Outflow d. Net Capital Outflow, Net Exports 4. If the Net Capital Outflow increases, the ________ of dollars in the Foreign Currency Exchange Market will increase, causing the real exchange rate to ________. a.
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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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