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  2. AP Macroeconomics
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Open Economy: International Trade and Finance

Question 1
MacroeconomicsAPConcept Practice
1 mark

Which of the following is a component of a country's current account?

Question 2
MacroeconomicsAPConcept Practice
1 mark

A country has exports of 500billion,importsof500 billion, imports of500billion,importsof600 billion, net investment income of 50billion,andnettransfersof−50 billion, and net transfers of -50billion,andnettransfersof−20 billion. What is the current account balance?

Question 3
MacroeconomicsAPConcept Practice
1 mark

Which of the following transactions would be recorded in the capital account of a country's balance of payments?

Question 4
MacroeconomicsAPConcept Practice
1 mark

If a country has a current account deficit of $100 billion, what must be the value of its capital account balance?

Question 5
MacroeconomicsAPConcept Practice
1 mark

What does it mean for a currency to appreciate?

Question 6
MacroeconomicsAPConcept Practice
1 mark

If the U.S. dollar appreciates against the Euro, how will this affect the price of U.S. goods for European consumers?

Question 7
MacroeconomicsAPConcept Practice
1 mark

Suppose the exchange rate between the British pound and the U.S. dollar changes from £1 = 1.50to£1=1.50 to £1 =1.50to£1=1.25. Which of the following statements is true?

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Question 8
MacroeconomicsAPConcept Practice
1 mark

In a FOREX graph, what is typically represented on the Y-axis?

Question 9
MacroeconomicsAPConcept Practice
1 mark

Assume there is an increase in demand for Japanese yen by US consumers. Which of the following will happen?

Question 10
MacroeconomicsAPConcept Practice
1 mark

How does an increase in tourism in a country typically affect the demand for its currency?