Referring to the figure below, an economy in short-run equilibrium at point A has a(n) __________ gap.  The gap could be eliminated by the self-correcting mechanism of the economy and eventually achieve long-run equilibrium at point __________ or the central bank could intervene with monetary tightening and the long-run equilibrium would be at point __________.

Tighter monetary policy in the United States __________ net exports through a __________ dollar. 

If a certain automotive part can be purchased in Mexico for 50 pesos, or in the United States for $6.15, and if the nominal exchange rate is 8 pesos per U.S. dollar, then the automotive part:

Based on the figure above, if an exchange rate of $0.15 dollars per Norwegian krone is maintained, the Norwegian government will lose (in dollars) ________ worth of international reserves per period.

A country will have a balance-of-payments deficit when its exchange rate:

Holding all else constant, an increase in the real interest rate on U.S. assets will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Euro/U.S. dollar exchange rate.

Flexible exchange rates ________ of monetary policy to stabilize the economy and fixed exchange rates ________ of monetary policy to stabilize the economy.

Referring to the figure below, an economy in short-run equilibrium at point D has a(n) __________ gap.  The gap could be eliminated by the self-correcting mechanism of the economy and eventually achieve long-run equilibrium at point __________ or the central bank could intervene with monetary easing and the long-run equilibrium would be at point __________.

A downward shift in the Fed’s policy reaction function is a(n) ________ of monetary policy, and the aggregate demand curve ________.

If a certain automotive part can be purchased in Mexico for 50 pesos, or in the United States for $6.35, and if the nominal exchange rate is 8 pesos per U.S. dollar, then the automotive part: