b
c
d
In an open economy, which of the following equations holds?
S+GT=I+CAS+GT=ICAS+TG=I+CAS+TG=CAIS+TG=ICA
Suppose that over the past decade, US inflation is greater than that in Mexico. Further, assume
that during this same period, the dollar appreciates relative to the Mexican peso. Given this
information, we find that during this period the US real exchange rate must increase. the US real
exchange rate can decrease or remain the same, but not increase. the US real exchange rate
remains unchanged. the US real exchange rate can increase or remain the same, but not decrease.
the US real exchange rate must decrease.
Assume that investors care only about expected rates of return. Further, assume that the domestic
one-year interest rate is 5% and that the foreign one-year interest rate is 6%. Finally, assume that
the domestic currency is expected to appreciate by 3% during the coming year. Given this
information, we know that individuals will be indifferent about holding domestic or foreign
bonds. individuals will hold only foreign bonds. individuals will hold only domestic bonds. the
interest parity condition holds.
Answer this question based on our discussion on chapter 19. Suppose initially the economy is in
equilibrium in a flexible exchange rate regime. In the new equilibrium after an increase in
government spending, G, investment increases; net exports decrease. investment increases; net
exports could increase or decrease. investment increases; net exports increase. investment
increases; net exports remain the same. investment decreases; net exports could increase or
decrease..
Mattingly "AI & Prompt Design: The Basics of Prompt Design"
bcd In an open economy, which of the following equ.pdf
1. b
c
d
In an open economy, which of the following equations holds?
S+GT=I+CAS+GT=ICAS+TG=I+CAS+TG=CAIS+TG=ICA
Suppose that over the past decade, US inflation is greater than that in Mexico. Further, assume
that during this same period, the dollar appreciates relative to the Mexican peso. Given this
information, we find that during this period the US real exchange rate must increase. the US real
exchange rate can decrease or remain the same, but not increase. the US real exchange rate
remains unchanged. the US real exchange rate can increase or remain the same, but not decrease.
the US real exchange rate must decrease.
Assume that investors care only about expected rates of return. Further, assume that the domestic
one-year interest rate is 5% and that the foreign one-year interest rate is 6%. Finally, assume that
the domestic currency is expected to appreciate by 3% during the coming year. Given this
information, we know that individuals will be indifferent about holding domestic or foreign
bonds. individuals will hold only foreign bonds. individuals will hold only domestic bonds. the
interest parity condition holds.
Answer this question based on our discussion on chapter 19. Suppose initially the economy is in
equilibrium in a flexible exchange rate regime. In the new equilibrium after an increase in
government spending, G, investment increases; net exports decrease. investment increases; net
exports could increase or decrease. investment increases; net exports increase. investment
increases; net exports remain the same. investment decreases; net exports could increase or
decrease.
