Global Econ - Final Exam 10

When deflation exists,

the real interest rate is greater than the nominal interest rate.

Suppose the United States unexpectedly decided to pay off its debt by printing new money. Which of the following would happen? Select one: a. People who held money would feel poorer. b. Prices would rise. c. People who had lent money at a fixed interest rate would feel poorer. d. All of the above are correct.

All of the above are correct.

When ranking movies by nominal box office receipts, what important fact is overlooked?

Prices, including those for movie tickets, have been rising over time.

On a Sunday morning, Tom sold 300 cups of coffee for a total of $

The $750 is a nominal variable. The 300 cups of coffee is a real variable.

Katarina puts money into an account. One year later she sees that she has 6 percent more dollars and that her money will buy 4 percent more goods.

The nominal interest rate was 6 percent and the inflation rate was 2 percent.

Which of the following is correct? Since 1950

U.S. exports and U.S. imports each about tripled.

Jill, a U.S. citizen, uses some euros to purchase a bond issued by a French vineyard. This exchange

does not change U.S. net capital outflow.

Net capital outflow

is always equal to net exports.

You buy a new car built in Sweden. Other things the same, your purchase by itself

raises U.S. imports and lowers U.S. net exports.