Answer to Question #348438 in Macroeconomics for GIGIG

Question

1. In case of a flexible exchange rate and a weak capital mobility, a decrease of the nominal exchange rate lei/€ from 4.85 to 4.7 leads to:

a) a depreciation of the national currency;

b) an increase of exports;

c) an increase of the trade deficit;

d) a decrease of the balance of payments deficit.

2. The amount of the fixed capital depreciation is not part of the following macroeconomic indicator:

a) GNP;

b) GFCF (Gross fixed capital formation);

c) GDP;

d) NNP.

3. Given that the annual nominal interest rate is 2% and the CPI for the same year is 101.5%, the real interest rate is:

a) 0.5%;

b) 1.97%;

c) -0.5%;

d) 3.5%.

Answer 1

1. d

2. c

3. b