A. decreases a country’s net exports and increases its long-run growth path
B. increases a country’s net exports and increases its long-run growth path
C. increases a country’s net exports and decreases its long-run growth path
D. decreases a country’s net exports and decreases its long-run growth path
Budget Deficits And The Trade Balance
An increase in the government budget deficit ?
A. has no impact on the real interest rate and fails to crowed out investment
B. decreases the real interest rate and crowds out investment
C. None of these answers
D. Increases the real interest rate and crowds out investment
An increasing in Europe’s taste for UK produced Hondas would cause the pound to ?
A. depreciate and would increase UK net exports
B. appreciate and would increase UK net exports
C. depreciate and would decrease UK net exports
D. appreciate, but the total value of UK net export stays the same
If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing Which of the following is true regarding the market for foreign currency exchange ?
A. The demand for pounds decreases and the pound depreciates
B. The Supply of pounds increases, and the pound depreciates
C. The Supply of pounds decreases, and the pound appreciates
D. The demand for Pounds increases and the pound appreciates
Suppose, due to political instability, Russians suddenly choose to invest in UK assets as opposed to Russian assets Which of the following statements is true regarding UK net foreign investment ?
A. UK net foreign investment is unchanged because only UK residents can after UK net foreign investment
B. UK net foreign investment rises
C. UK net foreign investment falls
D. None of the above
Which of the following statements about trade policy is true ?
A. A country’s trade policy has no impact on the size of its trade balance
B. None of these answers
C. A restrictive import quota decreases a country’s net exports
D. A restrictive imports quota increases a country’s net exports
Which of the following groups would not benefit from an EU imports quota on Japanese cars ?
A. Eu consumers who buy electronics from Japan
B. EU farmers who export grain
C. employees of EU car manufacturers
D. Shareholders of German carmaker BMW
An export subsidy should have the opposite effect of ?
A. A government budget deficit
B. Capital flight
C. An increase in Private saving
D. A tariff