If the dollar appreciates in the foreign exchange market:
A. net exports will increase.
B. net exports will be unaffected.
C. net exports will decrease.
D. It is impossible to say how net exports will be affected without knowing how net capital outflow is affected.
Answer: C
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A government program that relies on high barriers to imported goods in order to stimulate domestic production of competing goods is an example of a(n) ________ policy
A) primary-export-led B) import-substitution development C) outward-looking development D) linkage-effect
In the four decades from 1860 to 1900, the U.S. population nearly tripled. Real Gross Domestic Product (GDP)
(a) fell by more than the amount by which the population increased. (b) fell by the same amount by which the population increased. (c) rose at about the same rate as the population increase. (d) increased by even more than the population increase.
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
A balance-of-trade surplus exists
A. if the dollar value of exports exceeds the dollar value of imports. B. if the dollar value of imported capital exceeds the dollar value of exports. C. only if there is relative price inflation domestically. D. only if full employment exists domestically.