Macroeconomics Questions

China purposely keeps its​ currency, the​ RMB, undervalued, for which of the following​ reasons?

"China's Yuan Makes Biggest Leap in Five​ Months," Wall Street Journal​, June​ 1, 2017.Was this good news or bad news for firms such as Apple and Yum Brands​ (owners of KFC and Pizza​ Hut) that have stores or restaurants in​ China? Briefly explain.

Suppose you decide to withdraw​ $100 in currency from your checking account.What is the effect on M1? Ignore any actions the bank may take as a result of your having withdrawn the​ $100.

What is the biggest source of funds for U.S. firms to finance​ investments?

If the real exchange rate between the U.S. and India is​ 1.75, which of the following would be​ true?

Consider the following conditions​:The exchange rate between the U.S. dollar and the British pound is £1.11 equals=​$1.TheU.S. price level is 100 and the British price level is 102Real exchange rate????

All other things being​ equal, a decrease in interest rates in Britain would​ __________ which in turn would​ __________.​(Note: E​ = Units of foreign currency per British​ pound; e​ = real exchange rate where Britain is the domestic​ country.)

When incomes rise faster in the United States than in other​ countries,

According to the purchasing power parity​ theory, relative price levels play an important role in determining exchange rates in the​ long-run. Suppose prices have been rising faster in South Korea than in the United​ States, we then predict​ that:

If inflation in the United States is lower than inflation in other​ countries, then U.S. exports​ ________ and U.S. imports​ ________, which​ _________ net exports.

If the interest rate in the U.S. declines relative to the rate in the rest of the​ world, what will likely happen​ (assuming nothing else​ changes) to US​ exports, and​ why?

Suppose that the exchange rate between the dollar and the euro was €0.892 per dollar in July 2019 and euro€0.901 per dollar in January 2020From July 2019 to January 2020​, the euro

If the real interest rate​ (r) increases in the U.S. relative to the rate in​ Japan, which of the following is most​ likely?

Ron was vacationing in​ France, when his camera was stolen. As he walked into a camera​ store, Ron noticed that camera prices were in euros. If Ron was willing to pay $225 for a new digital camera and the exchange rate is $1.15 per​ euro, how much will Ron be paying in​ euros?

Suppose that currency traders expect that the value of ruble will fall in the future. How will this will affect the demand and supply of ruble in the foreign exchange​ market?

The nominal exchange rate​ (E) between the U.S. dollar and the Japanese yen is currently about 82 yen per dollar. If E goes from 82 to 72 over the next​ year, and the price levels in the two countries do not​ change, then which of the following ismost​ likely?

Suppose a house is built and sold in the year 2008. If the house is resold in the year​ 2019, is the value of the house included in Gross Domestic Product (GDP) for​ 2019?

The aggregate expenditure model can be written in terms of four spending categories. Which equation shows the relationship between aggregate expenditure and the four spending​ categories?

Would the services of a real estate agent who helped sell​ (or helped​ buy) the house be included in GDP for​ 2019?

The line that represents the relationship between consumption and disposable income is called the​ __________. The slope of the this line is the​ __________.