International Economics: Theory and Policy 12th Global Edition by Paul Krugman test bank

C) the international investment side of the international economy.
D) the issues of international cooperation between Central Banks.
E) the monetary side of the international economy, such as currency exchange.
Answer:  E
Difficulty:  Easy
AACSB:  Application of knowledge
 
4) The distinction between international trade and international money is NOT entirely clear because
A) real developments in the trade accounts do not have monetary implications.
B) the balance of payments includes only real measures.
C) developments caused by purely monetary changes have no real effects.
D) trade models focus on real, or barter relationships.
E) most international trade involves monetary transactions.
Answer:  E
Difficulty:  Easy
AACSB:  Application of knowledge
 
5) The distinction between international trade and international money is NOT entirely clear because
A) many monetary events have important consequences for trade.
B) real developments in the trade accounts do not have monetary implications.
C) the balance of payments includes only real measures.
D) developments caused by purely monetary changes have no real effects.
E) trade models focus on real, or barter relationships.
Answer:  A
Difficulty:  Easy
AACSB:  Application of knowledge