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51. As the price level rises, the exchange rate
a.falls, so exports rise and imports fall.
b.falls, so exports fall and imports rise.
c.rises, so exports rise and imports fall.
d.rises, so exports fall and imports rise.
52. Other things the same, if the price level rises, then domestic interest rates
a.rise, so domestic residents will want to hold more foreign bonds.
b.rise, so domestic residents will want to hold fewer foreign bonds.
c.fall, so domestic residents will want to hold more foreign bonds.
d.fall, so domestic residents will want to hold fewer foreign bonds.
53. Other things the same, if the price level falls, domestic interest rates
a.rise, so domestic residents will want to hold more foreign bonds.
b.rise, so domestic residents will want to hold fewer foreign bonds.
c.fall, so domestic residents will want to hold more foreign bonds.
d.fall, so domestic residents will want to hold fewer foreign bonds.
54. As the price level rises, the interest rate
a.falls, so the supply of dollars in the market for foreign currency exchange shifts left.
b.falls, so the supply of dollars in the market for foreign currency exchange shifts right.
c.rises, so the supply of dollars in the market for foreign currency exchange shifts left.
d.rises, so the supply of dollars in the market for foreign currency exchange shifts right.
55. Other things the same, if the price level falls, people
a.increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange increases.
b.increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases.
c.decrease foreign bond purchases, so the supply of dollars in market for foreign-currency exchange increases.
d.decrease foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases.
56. Other things the same, if the price level falls, people
a.increase foreign bond purchases, so the dollar appreciates.
b.increase foreign bond purchases, so the dollar depreciates.
c.increase domestic bond purchases, so the dollar appreciates.
d.increase domestic bond purchases, so the dollar depreciates.
57. Other things the same, if the price level rises, people
a.increase foreign bond purchases, so the dollar appreciates.
b.increase foreign bond purchases, so the dollar depreciates.
c.increase domestic bond purchases, so the dollar appreciates.
d.increase domestic bond purchases, so the dollar depreciates.
58. Other things the same, if the price level rises, people
a.increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange increases.
b.increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases.
c.decrease foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange increases.
d.decrease foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases.
59. Other things the same, if the U.S. price level rises, then
a.the supply of dollars in the market for foreign-currency exchange increases, so the exchange rate rises.
b. the supply of dollars in the market for foreign-currency exchange increases, so the exchange rate falls.
c.the supply of dollars in the market for foreign-currency exchange decreases, so the exchange rate rises.
d.the supply of dollars in the market for foreign-currency exchange decreases, so the exchange rate falls.
60. Other things the same, if the U.S. price level falls, then
a.U.S. residents want to buy more foreign bonds. The real exchange rate rises.
b.U.S. residents want to buy more foreign bonds. The real exchange rate falls.
c.U.S. residents want to buy fewer foreign bonds. The real exchange rate rises.
d.U.S. residents want to buy fewer foreign bonds. The real exchange rate falls.
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