Open-Economy Macroeconomics: Basic Concepts

Questão	Responda
Is an economy that does not interact with other economies in the world?	Answer: Closed economy
Is an economy that interacts freely with other economies around the world?	Answer: Open economy
They are key macroeconomic variables that describe an open economy’s interactions in world markets:	Answer: -exports, -imports, - the trade balance - exchange rates
An open economy interacts with other economies in two ways:	Answer: It buys and sells goods and services in world product markets, and it buys and sells capital assets such as stocks and bonds in world financial markets.
Are goods and services produced domestically and sold abroad:	Answer: exports
Are goods and services produced abroad and sold domestically:	Answer: Imports
Is the value of a nation’s exports minus the value of its imports; also called the trade balance?	Answer: net exports
Is the value of a nation’s exports minus the value of its imports; also called net exports?	Answer: trade balance
Is an excess of exports over imports:	Answer: trade surplus
Is an excess of imports over exports	Answer: trade deficit
Is a situation in which exports equal imports	Answer: balanced trade
They are factors that might influence a country’s exports, imports, and net exports	Answer: • Consumer tastes for domestic and foreign goods • The prices of goods at home and abroad • The exchange rates at which people can use domestic currency to buy foreign currencies • The incomes of consumers at home and abroad • The cost of transporting goods from country to country • Government policies toward international trade
Refers to the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners	Answer: net capital outflow
The net capital outflow sometimes is called?	Answer: Net foreign investment
When the net capital outflowit is positive?	Answer: When domestic residents are buying more foreign assets than foreigners are buying domestic assets, and capital is said to be flowing out of the country
When is the net capital outflow negative?	Answer: When domestic residents are buying fewer foreign assets than foreigners are buying domestic assets, and capital is said to be flowing into the country.
They are important variables that influence net capital outflow:	Answer: • The real interest rates paid on foreign assets • The real interest rates paid on domestic assets • The perceived economic and political risks of holding assets abroad • The government policies that affect foreign ownership of domestic assetss
An open economy interacts with the rest of the world in two ways. What are those two ways?	Answer: in world markets for goods and services and in world financial markets.
What mesures the net exports?	Answer: It measure an imbalance between a country’s exports and its imports.
What mesures Net capital outflow?	Answer: measures an imbalance between the amount of foreign assets bought by domestic residents and the amount of domestic assets bought by foreigners.
net capital outflow (NCO) must always equal net exports (NX):	Answer: Formula NCO =N 5 X.
International Flows of Goods and Capital: Summary This table shows the three possible outcomes for an open economy	Image: Imagen1 (binary/octet-stream)
The rate at which a person can trade the currency of one country for the currency of another	Answer: nominal exchange rate
An increase in the value of a currency as measured by the amount of foreign currency it can buy	Answer: appreciation
A decrease in the value of a currency as measured by the amount of foreign currency it can buy	Answer: depreciation
The rate at which a person can trade the goods and services of one country for the goods and services of another	Answer: real exchange rate
Is a key determinant of how much a country exports and imports	Answer: real exchange rate
What to macroeconomists use to measure the real exchange rate?	Answer: They use price indexes, such as the consumer price index, which measure the price of a basket of goods and services
What does the real exchange rate measures?	Answer: the price of a basket of goods and services available domestically relative to a basket of goods and services available abroad
Is a theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries	Answer: purchasing-power parity
refers to the value of money in terms of the quantity of goods it can buy	Answer: purchasing power
states that a unit of a currency must have the same real value in every country.	Answer. Purchasing-power parity

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Open-Economy Macroeconomics: Basic Concepts

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	Criado por TEJEDA ROSALES JENNIFER AMERICA aproximadamente 3 anos atrás