The open-economy macroeconomic model includesa. only the market for loanable funds.b. only the market for foreign-currency exchange.c. both the market for loanable funds and the market for foreign-currency exchange.d. neither the market for loanable funds or the market for foreign-currency exchange.

Which of the following statements are correct? state which ones are definitely incorrect and why.   a. Capital grows when investment is higher than depreciation b. The growth rate of capital increases when investment is higher than depreciation c. For a given rate of depreciation of capital, a rise in the ratio of investment to capital will raise the growth rate of capital d. There are no rich countries wth low investment ratios, and no poor countries with high investment ratios e. A country can only invest more than it saves if it borrows from abroad. f. The scatter diagram of capital output ratios vs investment rates does not show a perfect correlation. Therefore there is something wrong with the model of the way capital grows g. A country that increases its saving rate will be able to have more rapid growth of capital for as long as it maintains this higher savig rate h. A country that increases its saving rate will be able to have more rapid…

country has domestic investment of $200 billion. Its citizens purchase $600 billion of foreign assets and foreign citizens purchase $300 billion of its assets. What is national saving? a. $500 billion b. $400 billion c. $800 billion d. $600 billtion

15. Low - income countries and upper middle - income countries are informally grouped as the middle - income countries.  O. True O. False   16. The PPP gives an overall index of economic development. It gives a rough ability to make comparisons on the issue of economic welfare - much more than just using GDP statistics. PPP is important because it helps us to know how a country is doing. It is a better measure of a country's progress. O. True O. False   17. Health as measured by life expectancy, undernourishment, and literacy. O. True O. False   18. Gross domestic product is defined as gross domestic product, plus net receipts from abroad of compensation of employees, property income and net taxes less subsidies on production. O. True O. False

Which of the following is not true of the World Bank? a. It uses output per capita figures to classify economies b. It estimates output per capita figures c. It is affiliated with the United Nations d. It is an economic development institution e. It offers low-fee checking accounts to anyone in the world

4. Relative to a closed economy, it is easier in an open economy toa. pass the burden of government debt on to future generations.b. control interest rates.c. discourage private investment through government borrowing.d. confer monopoly power on key domestic industries.

What is the inflation of higher savings on economic growth classify as? a. Marco, examining one sector in economy b. Marco, examining one firm in economy c. Macro, examining entire economy

If at a given real interest rate desired national saving is $115 billion, domestic investment is $60 billion, and net capital outflow is $40 billion, then at that real interest rate in the loanable funds market there is a   A.  surplus. The real interest rate will fall. B.  surplus. The real interest rate will rise. C.  shortage. The real interest rate will rise. D.  shortage. The real interest rate will fall.

The lower-income industrial countries are catching up to the higher-income industrial countries in terms of economic growth. a.True b. False

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