If a country has a trade surplus of $60 billion, which of the following can be true? OA. The country's exports are $160 billion, and its imports are $60 billion. OB. The country's exports are $120 billion, and its imports are $180 billion. OC. The country's exports are $110 billion, and its imports are $190 billion. OD. The country's exports are $180 billion, and its imports are $120 billion.
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- Consider a small country that exports steel. Supposethat a “pro-trade” government decides to subsidizethe export of steel by paying a certain amount foreach ton sold abroad. How does this export subsidyaffect the domestic price of steel, the quantity ofsteel produced, the quantity of steel consumed, andthe quantity of steel exported? How does it affectconsumer surplus, producer surplus, governmentrevenue, and total surplus? Is it a good policy fromthe standpoint of economic efficiency? (Hint: Theanalysis of an export subsidy is similar to the analysisof a tariff.)Canada is both an importer and an exporter of cars. If Canada exports more cars than it imports and the price of cars rises, then ceteris paribus, Canada's terms of trade... Deteriorates because the gain in imports more than offsets the loss of exports. o b. Remains the same because the index of export prices rises by the same amount as the index of import prices. O c. Improves because the index of export prices rises and the index of import prices falls. o d. Improves because the index of export prices rises more than the index of import prices. Deteriorates because of the loss of exports that would result.O 0 0.05 0 1 Demand for imports (before $-devaluation) Demand for imports (after $-devaluation) 5.55 USA Japan 400 600 200 Price of imports, in foreign currency (before $-devaluation) 100 Suppose the $ is devalued: we go from Yen = $1/100 to Yen = $1/10. What is the elasticity of demand for imports in the USA? 800 10
- 20. Hyundai was manufacturing cars in South Korea that were exported to the United States, but now has a car manufacturing plant in the United States. Assuming that Hyundai's sales in the Uníted States remain the same, and the cars from their new U.S. plant are all sold in the United States, then producing more Hyundais in the United States would: decrease imports to the United 5tates. O increase U.5. exports, decrease U.5. exports. O increase imports to the United 5tates.Question 12 Other things equal, which of the statements below is false? O a. A trade deficit will keep GDP constant if all imported goods and services are sold at cost in the domestic economy O b. A trade deficit will increase GDP if all imported goods and services are sold at below cost in the domestic economy Oc. A trade deficit will decrease GDP if all imported goods and services are sold at below cost in the domestic economy O d. A trade deficit will increase GDP if all imported goods and services are sold at above cost in the domestic economy rornonseIf the value of goods and services that Australia purchases from the United States are less than the value of goods and services that the United States purchases from Australia, then the United States has a. positive net exports with Australia and a trade surplus with Australia. b. positive net exports with Australia and a trade deficit with Australia. c. negative net exports with Australia and a trade surplus with Australia. ar negative net exports with Australia and a trade deficit with Australia.
- A corporate treasurer tells you that he has just negotiated a five-year loan at a competitivefixed rate of interest of 5.2%. The treasurer explains that he achieved the 5.2% rate byborrowing at six-month LIBOR plus 150 basis points and swapping LIBOR for 3.7%. He goeson to say that this was possible because his company has a comparative advantage in thefloating-rate market. What has the treasurer overlooked? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.What happened here? All data in real $bn. NX + Y NX new NX old O a. our currency appreciated, raising our exports lowering our imports. O b. our currency depreciated, lowering our exports and increasing our imports. O c. None of the answers offered are accurate. O d. our currency depreciated, raising our exports and lowering our imports. O e. foreign income increased, raising our exports only Which of the following would be the effects of a rise in consumer optimism? You are strongly advised to graph this question before answering it. Shift upwards of the whole C function II Shift upwards of the whole S function II Shift downwards of the whole 5 function Iv A movement upwards and along stable Cand S functions. i only i and i Oc iv only O b. d. i and i O e. None of the answers offered are accurate. (All data is in real $ bn). What could have caused the change depicted below? BB=T-G Real $ bn BB new ВB old Y O a. Government decreased its spending on goods and services. O b. Government…18. A reduction in the marginal propensity to import will cause A) the ZZ line to become flatter and a given change in government spending (G) to have a larger effect on domestic output. B) the ZZ line to become flatter and a given change in government spending (G) to have a smaller effect on domestic output. C) the ZZ line to become steeper and a given change in government spending (G) to have a larger effect on domestic output. D) the ZZ line to become steeper and a given change in government spending (G) to have a smaller effect on domestic output.
- If the US Government increased Tariffs on goods imported in the US from China, what would most likely happen O China would not respond, making US Net Export Spending rise and China's Net Export Spending drop: China would respond in kind, causing minimal change in either nation's Net Export Spending OChina would respond but to a lesser degree, making US Net Export Spending rise and China's Net Export Spending drop China would respond to a greater degree, making US Net Export Spending drop and China's Net Export Spending RiseD 0 Question 15 91000 AERIN Iris Meado Question 16 BRACELETSIALE... Cigarettes and nicotine patches have a positive but small cross-price elasticity. Ceteris paribus, a cigarette tax on consumers would imply that: Ceteris paribus, the Australian dollar nominal exchange rate: O There will be a large movement up the demand and supply curve of cigarettes and demand for nicotine patches would rise by a large amount O Demand for cigarettes would fall and demand for nicotine patches would fall by a small amount O The demand for cigarettes would fall and demand for nicotine patches would rise by a small amount O There will be a small movement up the demand and supply curve of cigarettes and demand for nicotine ches would fall by a large amount UTS O will rise if Australian interest rates fall O will fall if Australian inflation falls relative to inflation in our trading partners will fall if Australian interest rates rise will rise if Australia's trading partners income rises The Eleventh…At one point Canadas GDP was 1,800 billion and its exports were 542 billion. What was Canadas export ratio at this time?