Question

Please answer the following 5 multiple choice questions

In a small open economy, when foreign governments reduce national saving in their countries, the equilibrium real exchange rate (measured in units of the home currency divided by units of foreign currency):

A.rises, and home country net exports rise.

B.falls, and home country net exports rise.

C.rises, and home country net exports fall.

D.falls, and home country net exports fall.

Compared to typical open-market operations, when engaging in quantitative easing operations conducted by the Federal Reserve between 2007 and 2011, Federal Reserve purchases tended to be _____ securities.

A.tax-favored and foreign

B.smaller-denomination and higher-grade

C.safer and shorter-term

D.riskier and longer-term

The largest component of national income is:

A.proprietors' income.

B.corporate profits.

C.net interest.

D.compensation of employees.

If 7 million workers are unemployed, 143 million workers are employed, and the adult population equals 200 million, then the unemployment rate equals approximately ______ percent.

A.3.5

B.4.9

C.4.7

D.7

If the real exchange rate depreciates from 1 Japanese good per U.S. good to 0.5 Japanese good per U.S. good, then U.S. exports ______, and U.S. imports ______.

A.decrease; increase

B.increase; decrease

C.decrease; decrease

D.increase; increase

In the relationship expressed in functional form Y = G(K, L), Y stands for real GDP, K stands for the amount of capital in the economy, and L stands for the amount of labor in the economy. In this case G( ):

A.is the symbol that stands for government input into the production process.

B.is the function telling how the variables in the parentheses determine real GDP.

C.indicates that the variables inside the parentheses are endogenous variables in the model.

D.is the growth rate of real GDP when the amount of capital and labor in the economy is fixed.

Answer 1