7. Question 7 Latin America is a major export market for the US. If, as a result of a slump in commodity prices, the real incomes in Latin American countries…
3. Question 3 Suppose P, P*, Y, Y*, \piπ, R, T, and G are exogenously given and the interest parity condition holds. Then aggregate “preferred” expenditure, D, rises when: 1…
10. Question 10 This year, country E held politically sensitive parliamentary elections and the government of the incumbent ruling party temporarily increased public expenditure to enhance its popularity. The government…
9. Question 9 This year, country T held politically sensitive parliamentary elections and the government of the incumbent ruling party temporarily increased public expenditure to enhance its popularity. The government…
5. Question 5 Which of the following factors does not shift the aggregate “preferred” expenditure (D) curve of an economy? 1 point The aggregate real income of the rest…
4. Question 4 In general, as aggregate income of an economy rises: 1 point Consumption demand rises by less than the income increase. Consumption demand rises by more…
8. Question 8 This year, country B held presidential elections and the government of the incumbent president temporarily increased public expenditure to win greater political support. Assuming that Ms, P,…
6. Question 6 Which of the following factors shifts the IS curve? 1 point Government expenditure Real income of the rest of the world The aggregate price…
2. Question 2 In the short run, when prices are sticky and the goods market is in equilibrium, income rises as the interest rate declines because: 1 point Investment…
1. Question 1 When do net exports rise? 1 point When current aggregate income declines When the real exchange rate declines When foreign income rises All…
