Question: In the open macroeconomy framework a "balance of payments deficit" implies that O a. National income must increase to increase imports O b. There are excessive capital inflows into the economy C. Central bank reserves decline. Od. Current account surplus exceeds capital account deficit.

A Canadian traveling to the United States converts $100 Canadian into 80 U.S. dollars. One month later he does the same thing and receives only 86 U.S. dollars. There are no transactions costs. The Canadian-U.S. exchange rate has and the Canadian dollar has relative to the U.S. dollar. O A. fallen; appreciated O B. increased; appreciated O C. not changed; remained stationary OD. fallen; depreciated O E. increased; depreciated

Pancraziland is an open economy, whose official currency is the pound. At the end of 2019, it had a net international investment position (NIIP) of 90 pounds. During 2020 it had a current account deficit of 10 pounds. What was the NIIP at the end of 2020? a. The information provided is not sufficient to answer the question Ob. 90 pounds O c. 100 pounds O d. 81 pounds e. 80 pounds

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Question: In an open economy operating under a pegged exchange rate system, if the government decides to pursue expansionary fiscal policies to stimulate economic growth, what is the most likely short-term impact on the country's foreign exchange reserves? A. A significant increase in foreign exchange reserves due to a boost in exports. B. No change in foreign exchange reserves, as the pegged exchange rate system neutralizes fiscal impacts. C. A decrease in foreign exchange reserves due to potential capital outflows and the need to maintain the peg. D. An increase in foreign direct investment, leading to a rise in foreign exchange reserves. Don't use chatgpt it is giving wrong answer and please provide valuable answer

Over time, a real depreciation in the value of a nation's currency should result in Select one: a. exports rising and imports falling. O b. exports falling and imports rising. O. both imports and exports rising. O d. both imports and exports falling.

1. With floating exchange rates, depreciation of a country's currency will, ceteris paribus, lead to: a. an increase in its net exports and net capital inflow. b. equal and offsetting changes in net exports and net capital inflow in either direction c. a fall in its net exports and net capital infow d. an increase in net exports and a fall in net capital inflow   2. Donald used to work full-time, but is now working only 5 hours a week so that he can spend more time learning Spanish. Which of the following is correct as measured by the national statistical office? a. The under-employment rate has increased b. The unemployment rate has increased. c. The participation rate has decreased d. The unemployment, participation and under-employment rates have all remained the same.   3. Ceteris paribus, the Australian dollar nominal exchange rate: a. will rise if Australian interest rates fall b. will fall if Australian inflation falls relative to inflation in our trading partners c. will rise…

Question 15 What is the likely result from a depreciation of a nation's currency when its economy is already operating at its full-employment level of outpul? CA, Net exports would fall and contribute to demand-pull inflation. OB. Net exports would fall, but equilibrium GDP would rise. OC. Net exports would rise and contribute to demand-pull inflation. CD Net exports would rise, but equilibrium GDP would fall.

In the short run, all of the following are disadvantages of a fixed exchange rate regime except: O A. macroeconomic shocks must be addressed with fiscal policy. O B. open market operations are overused. OC. they can lead to future exchange rate crises. O D. interest rates are constant. According to Robert Mundell, for countries to constitute an optimal currency area, such as adopting a common currency, they must have: O A. a different composition of industries. O B. high factor mobility. O C. similar per capita GDP. O D. all of the above.

If Canadian exports of goods and services were $37 billion, imports of goods and services were $42 billion, transfers by Canadians to foreigners were $3 billion and transfers from foreigners to Canadian citizens were $2 billion, then the current account balance would be O A. $4 billion. O B. - $6 billion. O C. $8 billion O D. $6 billion. O E. - $4 billion.