Open-Economy Macroeconomics Quiz

What happens to imports when the exchange rate appreciates?

Imports decrease because foreign goods become more expensive.

What is the effect of an increase in the price of foreign goods relative to domestic goods on exports?

Exports increase.

How does a decrease in world demand affect exports?

Exports decrease.

How does a depreciating exchange rate affect the competitiveness of domestic products?

It improves the competitiveness of domestic products. Signup and view all the answers

What happens to imports when the price of foreign goods increases relative to domestic goods?

Imports decrease. Signup and view all the answers

In the open-economy macroeconomics, what happens to imports when the price of the foreign good decreases relative to the price of the domestic good?

Imports increase due to the relative cheaper domestic goods. Signup and view all the answers

What is the effect of a decrease in real GDP on imports in an open economy?

Imports decrease as there is lower demand for both domestic and foreign goods. Signup and view all the answers

How does an appreciating exchange rate affect the competitiveness of domestic products in the international market?

Domestic products become relatively more expensive, reducing their competitiveness. Signup and view all the answers

What happens to exports when the price of foreign goods decreases relative to domestic goods?

Exports increase as foreign goods become relatively cheaper. Signup and view all the answers

How does a decrease in world demand affect exports in an open economy?

Exports decrease due to lower demand for both domestic and foreign goods. Signup and view all the answers

In an open economy, what is the effect of a decrease in the price of foreign goods relative to domestic goods on exports?

Exports increase due to increased demand for domestic goods. Signup and view all the answers

How does an increase in the price of foreign goods relative to domestic goods affect imports in an open economy?

Imports decrease due to decreased demand for domestic goods. Signup and view all the answers

What happens to imports when the exchange rate appreciates in an open economy?

Imports decrease as foreign goods become relatively more expensive. Signup and view all the answers

How does a depreciating exchange rate affect the competitiveness of domestic products in the international market?

Domestic products become more competitive due to decreased prices in the international market. Signup and view all the answers

What is the effect of a decrease in real GDP on imports in an open economy?

Imports decrease due to decreased demand for domestic goods. Signup and view all the answers

Open-Economy Macroeconomics Quiz

Questions and Answers

What happens to imports when the exchange rate appreciates?

What is the effect of an increase in the price of foreign goods relative to domestic goods on exports?

How does a decrease in world demand affect exports?

How does a depreciating exchange rate affect the competitiveness of domestic products?

What happens to imports when the price of foreign goods increases relative to domestic goods?

In the open-economy macroeconomics, what happens to imports when the price of the foreign good decreases relative to the price of the domestic good?

What is the effect of a decrease in real GDP on imports in an open economy?

How does an appreciating exchange rate affect the competitiveness of domestic products in the international market?

What happens to exports when the price of foreign goods decreases relative to domestic goods?

How does a decrease in world demand affect exports in an open economy?

In an open economy, what is the effect of a decrease in the price of foreign goods relative to domestic goods on exports?

How does an increase in the price of foreign goods relative to domestic goods affect imports in an open economy?

What happens to imports when the exchange rate appreciates in an open economy?

How does a depreciating exchange rate affect the competitiveness of domestic products in the international market?

What is the effect of a decrease in real GDP on imports in an open economy?

More Quizzes Like This

Exploring Economics: Microeconomics, International Trade, Economic Dev...

Exploring Economics: Macroeconomics, International Trade, and Economic...

Exploring Economics: International Trade, Microeconomics, Macroeconomi...

Exploring Economics: Public Finance, Macroeconomics, Economic Developm...

Upgrade to continue