Which of the following does NOT indicate intraindustry trade? A) Trading Jeeps for Toyotas B) Trading Boeing airplanes for Airbus airplanes C) Trading Bush beer for Heineken beer D) Trading Japanese-made films for Hollywood-made films E) Trading oil for trucks ANSWER E
Date: September 10th, 2020
MacDougall’s results can be interpreted as A) evidence against the classical model. B) evidence against the Heckscher-Ohlin model. C) support for the classical model. D) support for the Heckscher-Ohlin model. ANSWER C
Date: September 10th, 2020
In order to protect against foreign exchange risk, firms can use A) the spot market for foreign exchange. B) interest rate arbitrage. C) purchasing power parity. D) the forward market for foreign exchange. E) the J-curve. ANSWER D
Date: September 10th, 2020
Which of the following would cause the IS curve to shift to the left? A) an increase in government expenditures B) a decrease in the money supply C) an increase in domestic investment D) a decrease in taxes ANSWER B
Date: September 10th, 2020
If a country has a large deficit in its current account A) it has a large surplus in its financial account. B) it exports more than it imports. C) it is a net creditor to the rest of the world. D) None of the above are necessarily true. ANSWER A
Date: September 10th, 2020
A central bank’s international reserves consists of its holdings of A) gold. B) silver and gold. C) foreign assets and gold. D) domestic assets and precious metals. E) foreign and domestic currency holdings. ANSWER C
Date: September 10th, 2020
The future date on which the currencies are actually exchanged is called what? A) the value date B) the spot exchange date C) the two-day window D) the commitment date E) the forward exchange rate ANSWER A
Date: September 10th, 2020
Which of the following is an example of a regional currency arrangement? A) exchange rate union B) currency cartel associations C) free-trade zones D) most-favored nation status E) agreement on commercial trade ANSWER A
Date: September 10th, 2020
The current account is equal to A) S – I. B) C + I + G + X. C) I + X. D) T – G. ANSWER A
Date: September 10th, 2020
It may be argued that Japan’s explicit promotion of its microchip industry was an excellent example of successful industrial policy. What criteria would you apply to determine whether such a policy is or is not successful? Judging from your own stated criteria, was Japan’s exercise successful? Why or why not? What information would a government […]
Date: September 10th, 2020
