Econ 8.1

if exchange rate is 125 yen= $1, then a bottle of wine that costs 2500 yen costs

$20

Costa Rica's Exports (goods + services included)

$55 billion

Oceania buys $40 of wine from Escudia and Escudia buys $100 of wool from Oceania. Supposing this is the only trade that these countries do. What are the net exports of Oceania and Escudia in that order?

$60 and -$60

If exchange rate= 5 units of Peruvian currency/1 dollar and a hotel room in Lima costs 300 units of Peruvian currency- how many dollars do you need to get a room?

60 and purchase will increase Peru's net exports

If the demand for dollars in FOREX markets shifts left

ER falls + Q of money does not change

One year a country has negative net exports. The next year it still has negative net exports and imports have risen more than exports.

Trade deficit rose

If US exports are $150 billion and US imports are $!00 billion

US has a trade surplus of $50 billion

If the U.S. has exports of $1.5 trillion and imports of $2.2 trillion, then the U.S.

buys more from overseas than it sells overseas- trade deficit

Which of the following would both raise the US exchange rate?

capital flight from other countries to US occurs and US moves from a budget surplus to deficit

Ivan, a Russian citizen, sells several hundred cases of caviar to a restaurant chain in the United States. By itself, this sale

decreases US net exports and increases Russian net exports

Which of the following should shift the supply of dollars to the left?

expected rate of return on US assets rises

A limit on the quantity of a good produced abroad that can be purchased domestically is called a

import quota

When the US real exchange rate appreciates, US goods become:

less attractive to consumers in US and abroad

When a country's central bank increases the money supply, its

price level rises + its currency depreciates relative to other currencies

If Saudi Arabia had positive net exports last year, then it

sold more abroad than it purchased abroad- trade surplus