Principles of Economics 2e 2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: Steven A. Greenlaw; David Shapiro
1 Welcome To Economics! 2 Choice In A World Of Scarcity 3 Demand And Supply 4 Labor And Financial Markets 5 Elasticity 6 Consumer Choices 7 Production, Costs, And Industry Structure 8 Perfect Competition 9 Monopoly 10 Monopolistic Competition And Oligopoly 11 Monopoly And Antitrust Policy 12 Environmental Protection And Negative Externalities 13 Positive Externalities And Public Goods 14 Labor Markets And Income 15 Poverty And Economic Inequality 16 Information, Risk, And Insurance 17 Financial Markets 18 Public Economy 19 The Macroeconomic Perspective 20 Economic Growth 21 Unemployment 22 Inflation 23 The International Trade And Capital Flows 24 The Aggregate Demand/aggregate Supply Model 25 The Keynesian Perspective 26 The Neoclassical Perspective 27 Money And Banking 28 Monetary Policy And Bank Regulation 29 Exchange Rates And International Capital Flows 30 Government Budgets And Fiscal Policy 31 The Impacts Of Government Borrowing 32 Macroeconomic Policy Around The World 33 International Trade 34 Globalization And Protectionism A The Use Of Mathematics In Principles Of Economics B Indifference Curves C Present Discounted Value D The Expenditure-output Model Chapter23: The International Trade And Capital Flows
Chapter Questions Section: Chapter Questions
Problem 1SCQ: If foreign investors buy more U.S. stocks and bonds, how would that show up in the current account... Problem 2SCQ: If the trade deficit of the United States increases, how is the current account balance affected? Problem 3SCQ: State whether each of the following events Involves a financial flow to the Mexican economy or a... Problem 4SCQ: In what way does comparing a countrys exports to GDP reflect its degree of globalization? Problem 5SCQ: At one point Canadas GDP was 1,800 billion and its exports were 542 billion. What was Canadas export... Problem 6SCQ: The GDP for the United States is 18,036 billion and its current account balance is 484 billion. What... Problem 7SCQ: Why does the trade balance and the current account balance track so closely together over time? Problem 8SCQ: State whether each of the following events Involves a financial flow to the U.S. economy or away... Problem 9SCQ: How does the bottom portion of Figure 23.3, showing the international flow of investments and... Problem 10SCQ: Explain the relationship between a current account deficit or surplus and the flow of funds. Problem 11SCQ: Using the national savings and Investment identity, explain how each of the following changes... Problem 12SCQ: If a country is running a government budget surplus, why is (T - G) on the left side of the... Problem 13SCQ: What determines the size of a countrys trade deficit? Problem 14SCQ: If domestic Investment increases, and there is no change in the amount of private and public saving,... Problem 15SCQ: Why does a recession cause a trade deficit to increase? Problem 16SCQ: Both the United States and global economies are booming. Will U.S. imports and/or exports increase? Problem 17SCQ: For each of the following, indicate which type of government spending would justify a budget deficit... Problem 18SCQ: How did large trade deficits hurt the East Asian countries in the mid 1980s? (Recall that trade... Problem 19SCQ: Describe a scenario in which a trade surplus benefits an economy and one in which a trade surplus is... Problem 20SCQ: The United States exports 14 of GDP while Germany exports about 50 of its GDP. Explain stat that... Problem 21SCQ: Explain briefly whether each of the following would be more likely to lead to a higher level of... Problem 22RQ: If imports exceed exports, is it a trade deficit or a trade surplus? What about if exports exceed... Problem 23RQ: What is included in the current account balance? Problem 24RQ: In recent decades, has the U.S. trade balance usually been in deficit, surplus, or balanced? Problem 25RQ: Does a trade surplus mean an overall inflow of financial capital to an economy, or an overall... Problem 26RQ: What are the two main sides of the national savings and investment identity? Problem 27RQ: What are the main components of the national savings and investment identity? Problem 28RQ: When is a trade deficit likely to work out well for an economy? When is it likely to work out... Problem 29RQ: Does a trade surplus help to guarantee strong economic growth? Problem 30RQ: What three factors will determine whether a nation has a higher or lower share of trade relative to... Problem 31RQ: What is the difference between trade deficits and balance of trade? Problem 32CTQ: Occasionally, a government official will argue that a country should strive for both a trade surplus... Problem 33CTQ: A government official announces a new policy. The country wishes to eliminate its trade deficit, but... Problem 34CTQ: If a country is a big exporter, is it more exposed to global financial crises? Problem 35CTQ: If countries reduced trade barriers, would the international flows of money increase? Problem 36CTQ: Is it better for your country to be an international lender or borrower? Problem 37CTQ: Many think that the size of a trade deficit is due to a lack of competitiveness of domestic sectors,... Problem 38CTQ: If you observed a country with a rapidly growing trade surplus over a period of a year or so, would... Problem 39CTQ: Occasionally, a government official will argue that a country should strive for both a trade surplus... Problem 40CTQ: What is more important, a countrys current account balance or GDP growth? Why? Problem 41CTQ: Will nations that are more involved in foreign trade tend to have higher trade imbalances, lower... Problem 42CTQ: Some economists warn that the persistent trade deficits and a negative current account balance that... Problem 43P: In 2001, the United Kingdoms economy exported goods worth 192 billion and services worth another 77... Problem 44P: Imagine that the U.S. economy finds itself in the following situation: a government budget deficit... Problem 45P: Table 23.7 provides some hypothetical data on macroeconomic accounts for three countries represented... Problem 46P: Imagine that the economy of Germany finds itself in the following situation: the government budget... Problem 46P: Imagine that the economy of Germany finds itself in the following situation: the government budget...
Germany is interested in saving Spain's economy because:
of Germany's responsibility for WWII
they both share a common currency
Germany has an independent monetary policy
Germany has a more stable government than Spain
Definition Definition Policy implemented by the central bank of a country (such as the Federal Reserve in the United States) to achieve certain macroeconomic objectives. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.
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