Policymakers in open economies face a “trilemma” of three conditions that cannot all be realized at the same time. Which one of the following is not part of this “trilemma” of open-economy macroeconomics? Multiple Choice Be open to international flows. Implement capital controls. Fix its exchange rate. Control its domestic interest rate.

Economists are of the view that the Mundell-Fleming Model is quite useful for explaining economic fluctuations in small open economies. Critically assess this statement.

Consider Figure 14.7, which shows the relationship between cultural modernization and income per capita. In which case will the “modernization multiplier” be larger: when the M(Y) curve is flat, or when it is steep, although less steep than the Y(M)curve? What is the economic interpretation of the slope of the M(Y) curve?

Which scenario best demonstrates foreign direct investment? Salia started a Polish restaurant in her home country, the United States, after she took cooking lessons from a well-known chef in Poland.   Super Blooms, a reputable vegetable plant company in Holland, exports tomato, pepper, and potato garden plants across the globe.     Ups n Downs Inc., a Chinese firm, supplies roller coaster components in the United States.   Domesticity, a U.S.-based office furniture company, has set up its own assembly plant in Japan to cater to the needs of the Asian market.   Lux Linens, a fabric conglomerate in the United States, imports raw silk from China and Italy.

please answer the following question related to international economics: On balance, has globalization (i.e. global capitalism/trade) had more of a positive or negative impact on society? And reference both the pros and cons of globalization)

Answer the question on the basis of the following information for a mixed open economy: C = 40 + .8Y I = 40 G = 40 EX =10 IM = 20 Refer to the above information. This nation is incurring: Group of answer choices a trade surplus. a trade deficit. unemployment. balance in its international trade.

For this question, treat the countries listed in each row as the home country, and treat the United States as the foreign country. Suppose the cost of the market basket in the United States is PUS = $190. Check to see whether PPP holds for each of the countries listed and determine whether we should expect a real appreciate or real depreciation for each country (relative to the United States) in the long run.   You can fill out your answers in the table directly but please show how you worked out the problem for Brazil using the space below the table. Round your answers to 2 decimal places if necessary.     Country (currency measured in FX units) Per $ (EFX/$) Price of Market Basket (in FX) Price of U.S. Basket in FX          (PUSx EFX/$) Real Exchange Rate qcountry/US Does PPP Hold? (yes or no) Is FX Currency Overvalued or Undervalued? Is FX Currency Expected to Have Real Appreciation or Depreciation? Brazil (real) 4.07 520           India…

We saw in class that PPP conversion factors are different from market exchange rates because they are based on the actual purchasing powers of currencies. The table below shows the GDP of different countries in their local currency along with their GDP at the market exchange rate, population, and the PPP conversion factor. country GDP in 2017 GDP (US$s, at market ex.) PPP factor роpulation Japan 544¥ trillion $4.86 trillion 105 ¥/$ 127.5 million India 1717 trillion $2.65 trillion 20 7/$ 1339 million |Мexico 22 trillion pesos $1.16 trillion 11 pesos/$ 129 million Which country has the higher GDP per capita measured in purchasing power, India or Mexico? Mexico's average income is more than double India's India's average income is more than double Mexico's Mexico and India have similar average incomes not enough information is provided

Some economists warn that the persistent trade deficits and a negative current account balance that the United States has run will be a problem in the long run. Do you agree or not? Explain your answer.

Which of the following best describes the Washington Consensus? It describes a bipartisan legislative agreement in the U.S. Congress. It describes monetary policy adopted by the U.S. president. It describes a protectionist economic policy used by the IMF. It describes economic policy that supports government deficit spending. None of these accurately describes the Washington Consensus.