AP Econ Unit VI

It takes me 5 acres to grow a ton of grapes. Input problem or output problem?

Net transfers

In 2020, $1 = 5 Canadian loonies. In 2022, $1= 3 Canadian loonies. What happened?

Toyota (Japan) buys an automobile factory (real estate) in Kentucky

Stocks and bonds

How would a supply side economist combat stagflation?

It takes me 20 hours to make a unit of food. Input problem or output problem?

Ken can produce 5 tomatoes per day. Sam can produce 10 tomatoes per day. Who has the absolute advantage?

If national income rises in the US, imports will

$1=100 yen. A $25 t-shirt costs

Which of the following will increase the demand for loanable funds?

If the Japanese yen appreciates relative to the US dollar, which of the following is true?

An increase in the value of a nation's currency will (other GDP factors held constant)

If Mexico increases their investment in the US, what happens to the market of the peso?

An increase in the supply of loanable funds has what impact on interest rates?

If the Fed uses contractionary monetary policy, which of the following will increase?

Alyssa trades 10 cheez-its to Josh in exchange for 5 pretzels. Who is supposed to benefit?

In an input problem, you have an absolute advantage if your number is

Which of the following affects the supply of loanable funds in the US?

When solving for comparative advantage on output problems, put the numbers

If the supply of loanable funds increases in Ragland, what will happen to exports?

If the supply of loanable funds increases in Ragland, what happens the value of its currency?

A current account deficit implies that

If there is a capital inflow to Country X, its currency

If the supply of a country's currency increases, what will happen to the value of its currency?

Net investment income

In an output problem, you have a comparative advantage if your number is

In Holujia, banks charge 15% interest on all loans. If inflation is 8%, the real interest rate

Higher US interest rates cause demand for the dollar to increase. US exports will?

I make 12 Captain America shields per hour. Input problem or output problem?

merchandise imports and exports

Which of the following will not cause US interest rates to increase?

If Mexico increases their investment in the US, what happens to the price/value of the peso?

It takes Emily 3 hours to make a cake. It takes Alanna 2 hours. Who has the absolute advantage?

A depreciating dollar will

If US interest rates are too high, what will happen to domestic investment?

Financial capital inflows to the nation

According to the law of comparative advantage, a country should

When a government sells bonds, it causes

A lower comparative advantage means

The balance of payments is

A stay-at-home parent (homemaker)

Which of the following will NOT cause the US to import more?

Country X has a higher interest rate than Country Y. There will be a

If interest rates decrease, what happens to demand for a country's currency?

How does expansionary monetary policy affect nominal interest rates?

If the price level in the US increases relative to other countries, what is the likely result?

Money spent by tourists

If demand for a country's currency decreases, what will happen to the value of the currency?

$2=1 Euro. A $30 bottle of Mountain Dew costs

In an input problem, you have a comparative advantage if your number is

Higher US interest rates cause foreign demand for the dollar to increase. Value of the dollar?