Macroeconomics for Business Management Coursera answers all week

 

Module 1:

 

1.

Question 1

What does GDP stand for?

1 / 1 point

GDP is the quantity only of the final goods produced by the economy in a specific period of time

GDP does not help my business plan in any way

GDP is the quantity of the final goods produced by national owned companies in a specific period of time

GDP stands for income as well

 

2.

Question 2

What are all components of a GDP?

1 / 1 point

Budget deficit

Trade balance (X - M)

Income

GDP = C + I + G + X - M

 

3.

Question 3

What could lead household consumption to increase?

1 / 1 point

All of them are correct

Sale of household assets

Disposable Income (Y – T)

Lower taxes

 

Module 2 :

 

1.

Question 1

What does stand for investment as part of GDP, and what is dependent upon?

1 / 1 point

Investment in the stock market

None of them are correct

Investment in the financial market and real interest rates

Investment in gross capital formation such as highways, hydro ways, productive capacity, and real interest rates

 

2.

Question 2

If a government wishes to pursue an expansionary fiscal policy, it can do which of the following?

1 / 1 point

Increase taxes and decrease government expenditure

Decrease taxes and decrease government expenditure

Increase government expenditure

Increase government expenditure and/or decreases taxes

 

Module 3 :

Question 1

How could the exchange rate influence the competitiveness of a country's exports?

1 / 1 point

If a country experiences an appreciation of its domestic currency in terms of another currency (foreign), the price of exports abroad will be lower in foreign currency

If a country experiences an appreciation of its domestic currency in terms of another currency (foreign), the price of exports abroad will be the same in foreign currency

If a country experiences a depreciation of its currency in terms of another currency (foreign), the price of exports abroad will be higher in foreign currency

If a country experiences a depreciation of its domestic currency in terms of another currency (foreign), the price of exports abroad will be lower in foreign currency

 

2.

Question 2

Besides exchange rate movements (depreciation and appreciation), what else does impact exports and imports?

1 / 1 point

Lower international income (Y*) leads to higher domestic exports

Higher domestic and international income (Y and Y*) lead to higher domestic imports and higher domestic exports

Lower domestic and international income (Y and Y*) lead to lower domestic imports and lower domestic exports

Lower domestic income (Y) leads to lower domestic exports and higher domestic imports

 

 

3.

Question 3

How does Keynes multiplier work?

1 / 1 point

If government expenditure increases by US$10 billion, the final impact on domestic GDP tends to be lower as income will decrease, leading also to lower household consumption, hence multiplying the final impact of the original US$10bn

If government expenditure increases by US$10 billion, the final impact on domestic GDP will be the same as government expenditure is part of the GDP

If government expenditure increases by US$10 billion, the final impact on domestic GDP tends to be higher as income will decrease, leading also to a decrease in household consumption, hence decreasing the final impact of the original US$10bn

If government expenditure increases by US$10 billion, the final impact on domestic GDP tends to be higher as income will increase, leading also to an increase in household consumption, hence multiplying the final impact of the original US$10bn

 

Module 4 :

 

1.

Question 1

What sort of interventions by the monetary authority could lead to a rise in interest rates?

I. The purchase of government bonds;

II. The purchase of international reserve to preserve the exchange rate from appreciating;

III. The decrease of reserve requirement over deposits.

0 / 1 point

Only alternative I is correct.

Only alternative II is correct.

Alternatives II and III are correct.

All alternatives are incorrect.

 

2.

Question 2

The followings decisions took by the monetary authority would lead to an increase in the monetary base:

1 / 1 point

The purchase of government bonds.

Loans to commercial banks.

The purchase of foreign currency (international reserves).

All of them are correct.

 

3.

Question 3

What is included in the current account of a balance of payments?

1 / 1 point

Capital account, portfolio investments, and reserve requirement.

FDI, portfolio investments, and external debt.

Trade balance, foreign direct investment (FDI), and errors and omissions.

Trade balance, balance of services, and unilateral transfers.

 

4.

Question 4

How can a fixed exchange rate regime control hyperinflation?

1 / 1 point

Nominal exchange rate depreciation; higher exports; inflation controlled.

Real exchange rate appreciation; higher imports; higher competition with domestic goods; inflation controlled.

Nominal exchange rate appreciation; higher imports; higher competition with domestic goods; inflation controlled.

Real exchange rate depreciation; higher imports; higher competition with domestic goods; inflation controlled.

 

5.

Question 5

What are the main pitfalls or side effects triggered by using a pegged or fixed exchange rate regime to control hyperinflation?

0 / 1 point

Real Exchange rate appreciation; ii. Decrease of international reserves; iii. Lower competitiveness of domestic exports; iv. Trade deficit; v. Current account deficit.

Real Exchange rate appreciation; ii. International reserves preserved; iii. Lower competitiveness of domestic exports; iv. Higher inflation.

Real exchange rate depreciation; ii. Decrease of international reserves; iii. Higher competitiveness of domestic exports; iv. Higher budget deficit; v. Lower interest rates.

Real exchange rate depreciation; ii. Increase of international reserves; iii. Lower exports competitiveness; iv. trade surplus; v. Current account surplus.

 

6.

Question 6

Please select which of the following assertions are TRUE:

0.75 / 1 point

A balance of payments is composed of current account plus capital and financial account plus errors and omissions.

If a monetary authority wishes to pursue a contractionary monetary policy, it may do so by buying government bonds.

A country that posts a trade surplus of US$ 35 bn, current account surplus of US$ 10 bn, a deficit in the balance of services of US$ 30 bn, then the number of unilateral transfers is US$ 5 bn.

The more a country grows, the higher its imports.