IME Chapter 13

Question 1

Each stock equilibrium is also a flow equilibrium.

Accepted Answer

True

Question 2

For the US over long time periods: T - G < 0 and CA < 0 (we call it TWIN deficit)

Accepted Answer

True

Question 3

Private saving is defined as Y - T - C

Accepted Answer

True

Question 4

Formula for the log of real exchange rate:

Accepted Answer

e - p + p*

Question 5

Each flow equilibrium is also a stock equilibrium.

Accepted Answer

False

Question 6

For Ireland: GNP/GDP > 1

Accepted Answer

False

Question 7

Ratio C/GDP in Germany in 2005

Accepted Answer

60 %

Question 8

Which country has a trade balance deficit but a surplus in the secondary income account?

Accepted Answer

Haiti

Question 9

GDP/GNP Germany almost equal to 1.

Accepted Answer

True

Question 10

For Kuwait: GDP > GNP

Accepted Answer

False

Question 11

In an open economy: CA = SP + (G - T) - I

Accepted Answer

False

Question 12

When central bank intervenes at the foreign exchange market, we address the following account:

Accepted Answer

Reserve assets

Question 13

For Germany X - IM = 5 %: What do we get in exchange?

Accepted Answer

Bonds

Question 14

Formula for real exchange rate

Accepted Answer

(E * P*) / P

Questions 14