Figure 32-5 Refer to This Diagram of the Open-Economy Macroeconomic Model to Model

question 64

Multiple Choice

Figure 32-5
Refer to this diagram of the open-economy macroeconomic model to answer the questions below.

-Refer to Figure 32-4.Suppose that the government goes from a budget surplus to a budget deficit.The effects of the change could be illustrated by

• A)shifting the demand curve in panel a to the right and the demand curve in panel c to the left.
• B)shifting the demand curve in panel a to the left and the supply curve in panel c to the left.
• C)shifting the supply curve in panel a to the right and the demand curve in panel c to the right.
• D)shifting the supply curve in panel a to the left and the supply curve in panel c to the left.

Identify the accounting treatment for foreign currency transactions under U.S. accounting standards.

Analyze the effects of forward contracts and options on financial risk management.

Determine the effective use of hedging in foreign exchange risk management.

Calculate the foreign exchange gain or loss on transactions.

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Persistent pain that occurs after thoracic surgery.

Acute

Severe; serious.

Clinical Manifestations

Observable signs, symptoms, and syndromes that arise and are indicative of a specific disease or medical condition.

Dependence

The state of relying on or needing a substance, object, or activity for physical or psychological well-being.