Which of the following changes would cause american

9) Which of the following changes would cause American net exports to decrease?
A) A decrease in the real value of the dollar
B) A decrease in American income
C) An increase in foreign income
D) A shift in demand by American consumers away from domestically produced goods
Answer: D
Diff: 1
Topic: Section: 13.2
Question Status: Previous Edition

10) A decline in the exchange rate could have been caused by which of these factors?
11) The U.S. real interest rate rises relative to the British real interest rate. British net exports
________ and the British exchange rate ________.
12) The Japanese real interest rate declines relative to the German real interest rate. German net
exports ________ and the German exchange rate ________.
13.3 The IS-LM Model for an Open Economy
1) Goods market equilibrium in the open economy occurs when
A) desired saving equals desired investment.
B) output equals desired consumption plus desired investment plus government spending.
C) desired consumption equals desired investment.
D) desired saving minus desired investment equals net exports.
Answer: D
Diff: 1
Topic: Section: 13.3
Question Status: Previous Edition

2) In an open economy, a decrease in net exports because of reduced demand for domestic
products by foreigners should cause the domestic real interest rate to ________ and should cause
desired saving minus desired investment to ________.
3) A decrease in foreign output would cause the domestic country's net exports to ________ and
cause the domestic country's IS curve to ________.
4) An increase in foreign output would cause the domestic country's net exports to ________ and
cause the domestic country's IS curve to ________.
5) A decrease in the foreign real interest rate would cause the domestic country's net exports to
________ and cause the domestic country's IS curve to ________.
A) rise; shift up
B) rise; shift down
C) fall; shift up
D) fall; shift down
Answer: D
Diff: 2
Topic: Section: 13.3
Question Status: Previous Edition