Suppose that there are only two countries, the U.S. and Japan. If real interest rates rise in Japan, which of the following is NOT true?
A) More Japanese yen will be supplied in exchange for dollars.
B) More U.S. dollars will be supplied in exchange for yen.
C) The volume of yen traded will increase.
D) Japanese borrowers will be worse off.
Question 2 - Which of the following is true?
A) A country experiencing a debt or currency crisis would contact the World Trade Organization.
B) The World Trade Organization was formed at the Bretton Woods conference.
C) The General Agreement on Tariffs and Trade created the World Trade Organization in the negotiations and treaty known as the Uruguay Round.
D) The World Trade Organization has no power to resolve trade disputes and to enforce their resolution.
Question 3 - Explain how potential gains from further reductions in tariff levels are different from the gains of the past.
What will be an ideal response?
Question 4 - Which of the following would NOT be a cause for an increased American demand for the Mexican peso?
A) The United States having lower interest rates than Mexico
B) Increased American demand for Mexican goods
C) The expectation by speculators that the value of the peso is edging up
D) Greater economic growth in the United States
Question 5 - IMF conditionality refers to the
A) technical assistance the IMF gives.
B) minimum-sized loan the IMF will make.
C) maximum-sized loan the IMF will make.
D) changes a country must make in order to receive IMF financial assistance.
Question 6 - Developed countries have lost comparative advantage in textiles and apparel.
Indicate whether the statement is true or false
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