University:
Eastern Kentucky University
Course:
ECO 394 | International Economics
Academic year:

2022
Views:

166

Pages:

1
Author:

Prince Sampson

1. A low home inflation rate relative to other countries would ____ the home country's current account balance, other things being equal. Low growth in the home income level relative to other countries would ____ the home country's current account balance, other things being equal. a. b. increase; increase 2. If a country's government removes a tariff on imported goods, that country's current account balance will likely ____ (assuming no other changes in tariffs by other governments). a. d. decrease 3. A large reduction in the current account deficit will place ____ pressure on the home currency value, other things being equal. a. a. upward 4. If the home currency begins to depreciate against other currencies, this should ____ the current account balance, other things being equal (assume that substitutes are readily available in other countries, and that the prices charged by firms remain the same). a. a. increase 5. Which of the following would likely have the least direct influence on a country's current account? a. b. executive salaries 6. A reduction in the use of quotas is expected to a. a. reduce the country's current account balance, if other governments do not change their position. 7. The United States typically has a balance-of-trade deficit in its trade with ____. a. c. A and B 8. The demand for U.S. exports tends to decrease when a. c. U.S. inflation rises. 9. Which of the following statements is not true? a. b. Outsourcing means that an MNC has initiated the exporting of its products. 10. Country Y is Country X's sole trading partner. Which of the following would increase the current account of Country X? a. a. The currency of Country X depreciates against the currency of Country Y.

Which of the Following Would Likely Have the Least Direct Influence on a Country's Current Account

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