Course Code eco122 Question Let us assume that planned aggregate demand is given by: AD = C + I + G + NX, Let C = 610 + 0.8Y; I = 220; and G = 800; NX = 10 and T = 250. Calculate the equilibrium output. Answer None of the above Question A rise in exchange rate when domestic currency rises relative to foreign currency, is called ________ Answer exchange rate depreciation Question When imported goods and services are purchased from abroad, though we pay in local currency in the local market, importers actually purchase those imported goods with the currency of the ____ country from which such goods are purchased. Answer foreign Question Exports and imports are both affected by _______ Answer international prices Question There are two components of import demand, the one that is fixed, and the one that _____ with income Answer varies Question ___ depend on the spending decisions of domestic consumers Answer imports Question The spending decisions are guided by the level of ____ , price level, taste and fashion of the foreign consumers Answer income Question ___ depend on spending decisions made by foreign consumers or overseas firms that purchase domestic goods and services Answer Exports Question ____ is the increase of consumer surplus plus producer surplus from lower tariffs or otherwise liberalizing trade Answer Gain from trade Question Gains from trade are the net benefits to agents from allowing an increase in voluntary ___ with each other Answer trading Question Let us assume that planned aggregate demand is given by: AD = C + I + G + NX, Let C = 610 + 0.8Y; I = 220; and G = 800; NX = 10 and T = 250. Calculate the equilibrium output. Answer None of the above Question A rise in exchange rate when domestic currency rises relative to foreign currency, is called ________ Answer exchange rate depreciation Question When imported goods and services are purchased from abroad, though we pay in local currency in the local market, importers actually purchase those imported goods with the currency of the ____ country from which such goods are purchased. Answer foreign Question Exports and imports are both affected by _______ Answer international prices Question There are two components of import demand, the one that is fixed, and the one that _____ with income Answer varies Question ___ depend on the spending decisions of domestic consumers Answer imports Question The spending decisions are guided by the level of ____ , price level, taste and fashion of the foreign consumers Answer income Question ___ depend on spending decisions made by foreign consumers or overseas firms that purchase domestic goods and services Answer Exports Question ____ is the increase of consumer surplus plus producer surplus from lower tariffs or otherwise liberalizing trade Answer Gain from trade Question Gains from trade are the net benefits to agents from allowing an increase in voluntary ___ with each other Answer trading Try Another Search