The table shows the transactions made during 2001 by the citizens of Biscuit, whose currency is the crumb. During 2001, the official reserves increased by 380 million crumbs. Calculate the current account balance.

880 million crumbs
880 million crumbs
1,000 million crumbs
1,000 million crumbs

The table shows the transactions made during 2001 by the citizens of Biscuit, whose currency is the crumb. During 2001, the official reserves increased by 380 million crumbs. How many million crumbs did Biscuit lend to the rest of the world in 2001?

500
500
2,000
240

On the island country of Sunshine where the unit of currency is fish, net exports are 50 fish, saving is 250 fish, taxes net of transfer payments are 100 fish, and the government budget deficit is 175 fish. What is the value of investment?

375 fish
25 fish
25 fish
375 fish

On the island country of Sunshine where the unit of currency is fish, net exports are 50 fish, saving is 250 fish, taxes net of transfer payments are 100 fish, and the government budget deficit is 175 fish. The private sector has a _______.

surplus of 125 fish
surplus of 225 fish
deficit of 125 fish
deficit of 225 fish

The table shows the exchange rates between various currencies and the pound sterling. Between 2000 and 2001, the pound _______ against the euro and _______ against the Japanese yen.

depreciated; depreciated
appreciated; appreciated
appreciated; depreciated
depreciated; appreciated

The table shows the exchange rates between various currencies and the pound sterling. Between 2000 and 2001, the U.S. dollar _______ against the Japanese yen and _______ against the euro.

appreciated; depreciated
appreciated; appreciated
depreciated; depreciated
depreciated; appreciated

Epsilon is a country whose unit of currency is the omega. New information leads people to expect that the omega will depreciate next year. As a result ____________.

there is a movement down along the demand curve for omegas
the demand curve for omegas shifts rightward
the demand curve for omegas shifts leftward
there is a movement up along the demand curve for omegas

Epsilon is a country with a flexible exchange rate whose unit of currency is the omega. If the demand for omegas decreases, the exchange rate _____________ and the quantity of omegas __________.

rises; does not change
rises; increases or decreases
falls; does not change
falls; decreases or increases

In France, the price of a computer is 1,227.6 euros. In Japan, the price of the same computer is 137,920 yen. If a pound sterling can buy 1.64 euros or 190 yen, then purchasing power parity _________________.

holds because the exchange rate is fixed
does not hold and the computer is cheaper in France
does not hold and the computer is cheaper in Japan
holds and the computer is the same price everywhere

According to the theory of PPP, if the price of goods in the UK were ___________ than in the United States, the exchange rate with the dollar would __________.

higher; decline in the short run
higher; decline in the long run
higher; rise in the short run
lower; decline in the long run