AP Macro Unit 6 Review

Capital will flow to nations with a relatively lower interest rate.

How do you calculate the balance of trade in the current account?

If Mexicans invest more in the US, the dollar price of the peso will

The price of a Japanese pen is 500 yen. If you can buy it for 100 euros, what is the exchange rate?

If the consumer price index in the United States drops, the US dollar would ___ on the foreign exchange market.

If a country enters a trade deficit (-Xn), what will happen to aggregate demand?

If German incomes rose in comparison to Russia's

If China demands more American goods, the value of the dollar would

If the current account is in deficit, the capital/financial account is in

The price of one currency in terms of another currency is

(Xn) Net Exports =

Which transaction would be included in the financial account for the US?

If the US dollar appreciates to the Japanese yen, imports will increase and the current account will be in

If the value of the dollar appreciates, what will happen?

If US interest rates cause demand for the dollar to increase, what happens to the value of the US dollar?

If the Fed uses contractionary monetary policy, interest rates rise and the value of the dollar rises.

If the dollar is weakened in value compared to the yen, ____ will increase.

Which action should be taken to restore full employment, and what will happen to the demand of this nation's currency?

If consumers prefer Japanese cars, which change will take place in the market for dollars?

If a country increases deficit spending, interest rates rise and the currency will

If Mexicans invest more in the US, the supply of pesos will

Which explains the change in value of the dollar caused by the shift in demand shown?

If a country has declining imports and rising exports their balance of trade is