Chapter2I
ter
atio
alFlowofFu
ds1Rece
tlytheUSexperie
ceda
a
ualbala
ceoftradereprese
ti
ga____alargesurplusexceedi
g100billio
bsmallsurplusclevelofzeroddeficit
ANSD
PTS1
2Ahighhomei
flatio
raterelativetoothercou
trieswould____thehomecou
tryscurre
taccou
tbala
ceotherthi
gsequalAhighgrowthi
thehomei
comelevelrelativetoothercou
trieswould____thehomecou
tryscurre
taccou
tbala
ceotherthi
gsequalai
creasei
creasebi
creasedecreasecdecreasedecreaseddecreasei
crease
ANSC
PTS1
3Ifacou
trysgover
me
timposesatariffo
importedgoodsthatcou
tryscurre
taccou
tbala
cewilllikely____assumi
g
oretaliatio
byothergover
me
tsadecreasebi
creasecremai
u
affecteddeitherAorCarepossible
ANSB
PTS1
f4____purchasesmoreUSexportstha
theothercou
trieslistedhereaItalybSpai
cMexicodCa
ada
ANSD
PTS1
5A
i
creasei
thecurre
taccou
tdeficitwillplace____pressureo
thehomecurre
cyvalueotherthi
gsequalaupwardbdow
wardc
odupwardordow
warddepe
di
go
thesizeofthedeficit
ANSB
PTS1
6Ifthehomecurre
cybegi
stoappreciateagai
stothercurre
ciesthisshould____thecurre
taccou
tbala
ceotherthi
gsequalassumethatsubstitutesarereadilyavailablei
thecou
triesa
dthatthepriceschargedbyfirmsremai
thesameai
creasebhave
oimpacto
creducedalloftheaboveareequallypossible
ANSC
PTS1
7TheI
ter
atio
alFi
a
cialCorporatio
wasestablishedto
fabcd
e
ha
cedevelopme
tsolelyi
Asiathroughgra
tse
ha
ceeco
omicdevelopme
tthrough
o
subsidizedloa
satmarketi
terestratese
ha
ceeco
omicdevelopme
tthroughlowi
terestrateloa
sbelowmarketratese
ha
ceeco
omicdevelopme
toftheprivatesectorthroughi
vestme
ti
stockofcorporatio
s
ANSD
PTS1
8TheWorldBa
kwasestablishedtoae
ha
cedevelopme
tsolelyi
Asiathroughgra
tsbe
ha
ceeco
omicdevelopme
tthrough
o
subsidizedloa
satmarketi
terestratesce
ha
ceeco
omicdevelopme
tthroughlowi
terestrateloa
sbelowmarketratesde
ha
ceeco
omicdevelopme
toftheprivatesectorthroughi
vestme
ti
stockofcorporatio
s
ANSB
PTS1
9TheI
ter
atio
alDevelopme
tAssociatio
wasestablishedtoae
ha
cedevelopme
tsolelyi
Asiathroughgra
tsbe
ha
ceeco
omicdevelopme
tthrough
o
subsidizedloa
satmarketi
terestratesce
ha
ceeco
omicdevelopme
tthroughlowi
terestrateloa
sbelowmarketratesde
ha
ceeco
omicdevelopme
toftheprivatesectorthroughi
vestme
ti
stockofcorporatio
s
ANSC
PTS1
10Whichofthefollowi
gwouldlikelyhavetheleastdirecti
flue
ceo
acou
tryscurre
taccou
tai
flatio
b
atio
ali
come
fcexcha
geratesdtariffseatar