Which of the following would contribute to a united

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Economics: Private and Public Choice
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Chapter 19 / Exercise 3
Economics: Private and Public Choice
Gwartney/Stroup/Sobel/Macpherson
Expert Verified
71. Which of the following would contribute to a United States current account surplus? A. The United States makes a unilateral tariff reduction on imported goods. B. General Motors pays a dividend to a Swiss stockholder. C. The United States cuts back on American military personnel stationed in Germany. D. Russian vodka becomes increasingly popular in the United States. AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 32-04 Summarize how we became a debtor nation. 72. Suppose the exchange rate is initially set at 120 yen per dollar and increases to 140 yen per dollar. In the U.S. economy this would be expected to A. increase the U.S. trade deficit (or decrease the trade surplus). B. decrease the U.S. trade deficit (or increase the trade surplus). C. increase the U.S. trade deficit only if exports change by more than imports. D. leave the U.S. trade deficit unchanged. E. decrease the U.S. trade deficit only if exports change by more than imports. AACSB: Analytic Bloom's: Apply Difficulty: Medium Learning Objective: 32-03 List and discuss the different exchange rate systems. 32-74
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Economics: Private and Public Choice
The document you are viewing contains questions related to this textbook.
Chapter 19 / Exercise 3
Economics: Private and Public Choice
Gwartney/Stroup/Sobel/Macpherson
Expert Verified
Chapter 32 - International Finance 73. If a U.S. importer has to write a $200 check to cover a 20,000 yen purchase from Japan, the exchange rate is A. 200 yen to a dollar. B. 100 yen to a dollar. C. 20 yen to a dollar. D. 10 yen to a dollar. E. 200 dollars to a yen. AACSB: Analytic Bloom's: Apply Difficulty: Medium Learning Objective: 32-03 List and discuss the different exchange rate systems. 74. If a Vulcan importer has to write a 4,000 Vulcan bucks check to cover a $200 purchase from the United States, the exchange rate is A. 200 Vulcan bucks to a dollar. B. 100 Vulcan bucks to a dollar. C. 20 Vulcan bucks to a dollar. D. 10 Vulcan bucks to a dollar. E. 20 dollars to a Vulcan buck. AACSB: Analytic Bloom's: Apply Difficulty: Medium Learning Objective: 32-03 List and discuss the different exchange rate systems. 75. If a nation's exports are $55 billion, while its imports are $50 billion, we can conclude with certainty that this nation is experiencing a A. balance of trade surplus. B. balance of payments surplus. C. positive balance on current account. D. positive balance on capital account. AACSB: Analytic Bloom's: Apply Difficulty: Medium Learning Objective: 32-02 Define and measure our balance of payments. 32-75
Chapter 32 - International Finance 76. Currency appreciation would occur in a nation if A. the demand for the nation's exports increases. B. the demand for the nation's imports increases. C. real interest rates in the nation decrease relative to the rest of the world. D. the inflation rate is higher within the nation than in the rest of the world. AACSB: Analytic Bloom's: Apply Difficulty: Medium Learning Objective: 32-03 List and discuss the different exchange rate systems.

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