Chapter 22. Assume a German tourist buys a Mexican beer in a pub in Houston, Texas. How will the U.S. GDP be affected? CA.U.S. GDP will be unaffected, since a foreigner buys a foreign product.B. U.S. GDP will decrease since the beer has to be imported from MexicoC. U.S. GDP will increase by the value added at the Houston pubD. U.S. GDP will increase, but only by the sales tax assessed on the beer7. If nominal GDP is $10,406 billion and the GDP-deflator is 110, then real GDP is about $9,460 billion8. The GDP-deflator and the CPI differ from each other since CA. the GDP-deflator does not include services but the CPI doesB. the GDP-deflator includes imported goods but the CPI doesn'tC. the CPI measures a fixed market basket but the GDP-deflator doesn'tD. the CPI includes more goods than the GDP-deflator does9. Assume you desire a real rate of return of 4% on an investment and you expect the annual average inflation rate to be 3.2%. What should the nominal interest rate be on this investment? 7.2%Chapter 93. Assume a model with no government and no foreign sector. If the consumption function is defined as C = 800 + (0.8)Y, and the income level is Y = 2,000, then the level of total saving is -4004. Assume a model with no government and no foreign sector. If we have a savings function that is defined as S = - 200 + (0.1)Y and autonomous investment decreases by 50, by how much will consumption change? -4505. Assume a model without income taxation and no foreign sector. If government purchases are increased by $25 billion financed by a lump sum tax increase of $25 billion, then AA. national income will increase by $25 billion but the budget deficit is unaffectedB. national income will increase $50 billion but the budget deficit is unaffectedC. neither national income nor the budget deficit will be affectedD. we cannot say for sure what will happen to national income or the budget deficit6. The size of the expenditure multiplier increases with an increase in CA. government transfer paymentsB. the marginal propensity to saveC. marginal propensity to consumeD. the income tax rate7. Assume the savings function is S = - 200 + (1/4)YD and the marginal tax rate is t = 20%. If the level of government spending increases by 100, by how much will the level of equilibrium income change? 2508. Assume a model of the expenditure sector with income taxes. If the level of autonomous investment decreases (due to negative business expectations), which of the following will be true? DA. the actual budget surplus will not be affectedB. the actual budget surplus will increaseC. the structural budget surplus will decreaseD. the cyclical component of the budget surplus will decrease9. Assume the consumption function is C = 600 + (3/4)YD and the income tax rate is t = 20%. What will be the effect on the actual budget surplus of an increase in autonomous investment by 200? an increase by 10010. Assume the consumption function is C = 200 + (0.8)YD and the income tax rate is t = 0.25. What will be the eff ect of an increase in government transfers by ΔTR = 100 on the full-employment budget surplus? an decrease by 100Chapter 104.哪些政策会使IS曲线变陡峭并向左移动？DA.货币供应量的减少B.政府转移支付的减少C.一笔税收的减少D.所得税率的减少5.LM曲线左上方表示DA.商品和服务的过度需求B.商品和服务的过度供给C.货币的过度需求D.货币的过度供给6.LM曲线会在什么情况下变平坦？BA.货币需求对利率变化的敏感度低B.货币需求对收入变化敏感度低C.货币需求对收入变化敏感度高D.货币政策乘数变大7.在IS-LM模型中，如果自主储蓄增加会导致收入和利率均减少8. 在IS-LM框架下，扩张性货币政策会增加消费和投资9.沿着AD曲线从左向右运动相当于BA.由于利率下降，IS右移B.由于实际货币余额增加，LM右移C.由于增加名义货币供给量，LM右移D.由于较低的实际货币余额，沿着LM曲线从左向右移动10.什么情况下AD曲线右移 AA.政府转移支付增加B.由于价格水平下降，实际货币余额增加C.自主储蓄增加D.央行限制名义货币供给量Chapter 111. 在美国，扩张性货币政策常以下方式进行：C A．财政部发行新债券来融资增加预算赤字B. 美联储要求银行增加贷款活动C. 美联储从银行或政府安全经销商那购买债券，以换取金钱D.美联储乡政府出售债券4.扩张性财政政策的副作用利率上升会导致国内生产总值的组成发生变化5.如果央行固定汇率BA.每次财政扩张后要承担公开市场销售B.每次IS曲线变动时，央行都要调整货币供给C.财政政策变化不会影响消费和投资D.上述所有6.挤出指的是CA.当所得税提高时，消费水平降低B.投资补贴减少后，投资水平降低C.财政政策的变化通过改变利率影响GDP的构成D.流动性陷阱时，财政政策完全无效8. 如果政府通过投资补贴刺激经济，BA. 投资和产出水平会增加，但消费将不受影响B. 投资增长的一部分会通过提高利率来抵消C. 可避免增加利率D. 央行的帮助下仍然必要的，因为补贴不会使利率上升10. 如果央行拒绝大量增加政府支出，最可能的结果将是A.由于利率改变，国际收支的经常账户出现盈余B.由于利率改变，消费水平下降C.GDP组成发生变化D.上述所有Chapter 122. Which of the following items is a surplus item in the balance of payments for the United Sates?A. a U.S. car dealer buys 20 BMWs from Germany and sells them at a profit in the U.S.B. a U.S. citizen deposits funds in a bank in the BahamasC. a German firm pays to get a license for the use of American technologyD. Bill Gates buys himself a small island off the coast of Indonesia4. 如果美国商品的价格水平为P = 110，外国商品的价格水平为P f = 220，名义汇率为e=1.2，真正汇率为 2.46. The concept of relative purchasing power parity implies thatA. the real exchange rate adjusts slowly to its long-run average levelB. the domestic price level will change rapidly until the real exchange rate is equal to 1C. the relative demand for domestic goods will rise if the real exchange rate is below 1D. the long-run relative price level of domestic to foreign goods (P/P f) is equal to 17. Restrictive monetary policy in the U.S.A. lowers the value of the U.S. dollar relative to other currenciesB. increases the value of the U.S. dollar relative to other currenciesC. increases U.S. net exportsD. should not have any effect on the U.S. trade balance9. In a model with flexible exchange rates and perfect capital mobility, restrictive fiscal policy is likely to causeA. an appreciation of the domestic currencyB. a decrease in the current account surplusC. an increase in net exportsD. an inflow of funds10. A country that follows a beggar-thy-neighbor policyA. induces an exchange rate depreciation to increase domestic output via monetary policyB. uses fiscal policy to increase its competitiveness on world marketsC. imposes a tariff on imported goodsD. tries to benefit from an increase in world demand by selling domestic products at higher pricesChapter 52.The Keynesian AS-curve implies thatA) the economy is always at the full-employment level of outputB) the AS-curve is completely verticalC) wages and prices are completely flexibleD) a change in spending will affect the level of GDP but not the price level3 In the Keynesian AS-curve case, if the government cuts welfare payments, thenA) the price level will decrease, but the economy will remain at the full-employment level of outputB) the level of output will decrease but the price level will remain the sameC) the levels of output and prices will decreaseD) unemployment will increase, since wages and prices are completely flexible4.The slope of the AS-curve becomes steeperA) as wages and prices become more flexibleB) as wages become more rigidC) as the economy moves further away from full employmentD) as the government implements expansionary fiscal policy5.If the unemployment rate is assumed to be at its natural rate, thenA) inflation cannot existB) the unemployment rate is zeroC) the unemployment rate is positive but at a level that exists when GDP is at its potential levelD) all unemployment is cyclical in nature6.In the medium run, an increase in oil prices willA) increase the price level but reduce the level of outputB) lead to a decrease in aggregate demandC) lead to an increase in aggregate demandD) not affect the level of real output10.As potential GDP grows over timeA) the level of output is essentially determined by shifts in the vertical AS-curveB) the price level remains constantC) the AD-curve shifts to the right due to a change in the average price levelD) the level of actual output can only change if the AD-curve shifts accordinglyChapter 65.The coordination approach to the Phillips curve focuses on the fact thatA) fiscal and monetary policies often are uncoordinatedB) firms are reluctant to change wages and prices because they aren't sure what their competitors will doC) workers are well informed about changes in their nominal wages but not about changes in their real wagesD) anticipated changes in monetary policy have no significant effect on the unemployment rate7.Which of the following equations best describes Okun's law?A) (Y - Y*) = 0.5(u - u*)B) (Y - Y*)/ Y* = - 2(u - u*)C) (Y* - Y) = 2(u - u*)D) (Y* - Y)/Y = - 0.5(u - u*)9.Which of the following is the most likely result of an unanticipated increase in money supply?A) higher prices and output in the medium run but no change in output in the long runB) higher prices and lower real money balances in both the medium and the long runC) higher prices and employment in the medium run, but no change in output and prices in the long runD) higher prices and output in the medium and long runs10.If the government employs restrictive monetary policy in response to an adverse supply shock,A) the inflation rate and the natural rate of unemployment will both decreaseB) the rate of unemployment will increase sharplyC) unemployment will remain at its natural levelD) the shift in the AS-curve can be reversed almost immediatelyChapter 33.If we assume a Cobb-Douglas production function where the share of labor is 3/4 and the share of capital is 1/4, then the marginal product of capital can be calculated asA) 3Y/4KB) Y/4KC) 4Y/KD) Y/K5.Assume a Cobb-Douglas aggregate production function in which labor's share of income is 0.7 and capital's share of income is 0.3. At what rate will real output grow if labor grows at2.0%, the capital stock grows at 1.0%, and total factor productivity increases by 1.8%?A) 4.8%B) 3.5%C) 3.0%D) 1.8%6.In the neoclassical growth model, a decrease in the savings rateA) raises the growth rate of output per capitaB) lowers the growth rate of output per capitaC) raises the steady-state capital-labor ratioD) lowers the steady-state capital-labor ratio7.In the neoclassical growth model, a decrease in the rate of population growth willA) decrease the growth rate of outputB) decrease the level of output per capitaC) decrease the steady-state capital-labor ratioD) all of the above8.In the neoclassical growth model, a one-time increase in technology willA) increase the growth rate of outputB) shift the investment requirement line upC) increase the steady-state capital-labor ratioD) all of the aboveChapter 41.Constant returns to scale for capital alone implies thatA) as both capital inputs and labor inputs are doubled, output will more than doubleB) as both capital inputs and labor inputs are doubled, output will less than doubleC) as both capital inputs and labor inputs are doubled, output will doubleD) as capital inputs are doubled, output will less than double2.Paul Romer's notion of social returns to capital implies thatA) the contribution of any new knowledge will not just go to the producer of new knowledge but be shared by others as wellB) new capital investments have a bigger impact on growth if the owners of capital share their newfound wealth with the poorC) investment in real capital benefits society as a whole while investment in human capital only benefits those who invest in themselvesD) investment in real capital has a bigger impact on labor productivity than investment in human capital3.The distinction between private and social returns to capital is important sinceA) policy makers want to know how much the government can gain from capital investmentsB) capital investments cannot be undertaken profitably unless subsidized by the governmentC) capital investments often have important spillover effectsD) capital investment increases labor productivity4.Assume an endogenous growth model with labor augmenting technology and a production function of the form Y = F(K,AN), with A = 2(K/N) such that y = 2k. If the rate of population growth is n = 0.03, the rate of depreciation is d = 0.04, and the savings rate is s = 0.08, the growth rate of output per capita isA) 15%B) 9%C) 7%D) 1%5.Assume an endogenous growth model with labor augmenting technology and a production function of the form Y = F(K,AN), with A = 1.2(K/N) such that y = 1.2k. If the rate of population growth is n = 0.03, the rate of depreciation is d = 0.05, how large would the savings rate (s) have to be to achieve a per-capita growth rate of output of 4 percent?A) 12%B) 10%C) 8%D) 4%6.Assume an aggregate production function with a constant marginal product of capital and with capital as the only factor of production, such that Y = aK. If there is neither population growth nor depreciation of capital, the growth rate of per-capita output isA) Δy/y = saB) Δy/y = sa + (n - d)C) Δy/y = sa + (n + d)D) Δy/y = sa/(n + d)7.The idea that increased investment in research and development will enhance economic growth isA) the key to linking higher savings rates to higher equilibrium growth ratesB) totally unprovenC) a crucial element of conditional convergenceD) an important part of the neoclassical growth model8.Conditional convergence is predicted for two countries with the same population growth and access to the same technology. This means that they will eventuallyA) reach the same income per capita and the same economic growth rate even if they have different savings ratesB) reach a different income per capita but the same economic growth rate even if they have different savings ratesC) reach the same income per capita and different economic growth rates if they have different savings ratesD) reach different income per capita levels and different economic growth rates if they have different savings rates9.Endogenous growth theory predicts that countries will achieve higher economic growth rates if they manage toA) lower their population growthB) increase their savings ratesC) shield their industries from foreign competitionD) all of the above10.The four "Asian Tigers" achieved their economic growth between 1966 and 1990 mostly throughA) population controlB) protection of domestic industries from foreign competitionC) hard work and sacrificeD) a large degree of government interventionChapter 131.Keynes' theory of consumption behavior largely relied on the equation C = Co + cY. This equation implies that the value of the average propensity to consumeA) increases as the economy goes into a recessionB) increases as the economy goes into a boomC) remains constant whether the economy goes into a boom or a recessionD) is always lower than the value of the marginal propensity to consume2.Assume a worker at age 30 with no wealth and an expected average annual earnings of $50,000, who wants to retire at age 65 and expects to live until age 80. According to the life-cycle hypothesis what dollar amount does that person consume annually?A) $45,000B) $40,000C) $35,000D) $30,0003.If we divide consumption expenditures into the purchases of non-durable goods and the purchases of durable goods, we realize thatA) the life-cycle and permanent-income theories apply much more to the consumption of non-durable goods than durable goodsB) the consumption of non-durable goods is much more interest sensitive than the consumption of durable goodsC) the consumption of non-durable goods is more strongly affected by a surprise change in income than the consumption of durable goodsD) the consumption of durable goods this year is largely the same as the consumption of durable goods last year4.According to the permanent-income theory of consumptionA) the short-run multiplier is identical to the long-run multiplierB) the short-run multiplier is larger than the long-run multiplierC) the short-run mpc is larger than the long-run mpcD) the short-run mpc is smaller than the long-run mpc5.According to the permanent-income hypothesisA) increases in current income lead to large increases in current consumptionB) current consumption is not significantly affected by a temporary change in incomeC) the mpc out of transitory income is greater than the mpc out of permanent incomeD) increases in the interest rate will affect consumption negatively6.The random-walk theory of consumptionA) clearly contradicts the permanent-income theoryB) predicts that current consumption is most strongly affected by current incomeC) predicts that this year's consumption is most strongly affected by last year's consumptionD) does not support the notion that people have rational expectations7.The fact that consumption exhibits "excess smoothness" implies thatA) consumption responds too strongly to surprise changes in incomeB) current consumption can be predicted based on changes in current incomeC) changes in transitory income have no effect on current consumption or savingD) none of the above8.If we account for liquidity constraints,A) we can explain why a temporary tax increase may have an effect on current consumptionB) we have to discard the permanent-income hypothesisC) consumption becomes much more interest sensitiveD) consumption responds much less severely to surprise changes in income9.Household savings behavior tends to be fairly interest inelastic, which can be largely explained byA) a very large substitution effectB) the fact that the income effect dominates the substitution effectC) the fact that the substitution effect is largely offset by the income effectD) the fact that the consumption of durable goods tends to be very interest inelastic10.Which of the following is an objection to the Barro-Ricardo proposition?A) people believe that debt-financing merely postpones taxationB) people who benefit from a tax cut now are often not the same people who pay higher taxes laterC) a tax cut may ease a person's liquidity constraints, inducing the person to consume moreD) most people can borrow funds when necessary and therefore always consume according to their permanent incomeChapter 141Which of the following will NOT affect the productive capacity of a country?A) more people getting a higher educationB) more people investing in government bondsC) the government improving the infrastructure such as bridges and highwaysD) firms replacing old PCs with newer, more efficient ones2In absence of taxation, the rental cost of capital can be defined asA) rc = i + πe - dB) rc = i - πe - dC) rc = i - πe + dD) rc = i + πe + d3If we ignore taxation and know that the rental cost of capital is 12%, the expected rate of inflation is 4%, and the nominal interest rate is 9%, we can conclude that the rate of depreciation must beA) d = 1%B) d = 7%C) d = 17%D) d = 25%4If the rental cost of capital is above the marginal product of capital, then a firm shouldA) increase its investment spendingB) decrease its investment spendingC) not replace some of the machines that have broken down in the production processD) undertake primarily replacement investments5Assume a Cobb-Douglas production function of the form Y = AK0.2N0.8. If the rental cost of capital is rc = 5%, the desired capital stock of a cost-minimizing firm should be equal toA) K* = 2YB) K* = 4YC) K* = 5YD) K* = 8Y6Assume the market interest rate is 10% and is not expected to change over the next three years. If an investment project has net returns of $2,420 after one year, $3,630 after the second year, and $3,993 after the third year, what is its net present discounted value?A) $10,043B) $9,130C) $9,020D) $8,2007The most likely source of funding for a U.S. firm wishing to finance a new investment project isA) a credit line with a bankB) retained earningsC) selling bondsD) issuing equity (stocks)8According to the accelerator model,A) a change in investment is proportional to the level of outputB) the level of investment spending is proportional to the level of outputC) the level of investment spending is proportional to the change in outputD) the level of investment spending is mainly affected by interest rate changes9Expansionary monetary policy has an effect on the housing market since itA) decreases the price of all assets, including housing pricesB) lowers real interest rates in the long run, so people will postpone buying homesC) lowers nominal interest rates, so banks find mortgage lending less profitableD) lowers nominal interest rates, so more homebuyers are able to qualify for mortgages10An unanticipated decrease in the level of inventories may occurA) in the midst of a boom, as firms prepare for the upcoming recessionB) in a boom when increased sales cannot be met by increases in productionC) in a recession when firms expect lower profits and try to keep their costs lowD) at the beginning of a recession as firms slash their prices to induce more salesChapter 151.As credit and debit cards are more widely used, we should expect thatA) more money balances will be held in M1B) more money balances will be held in M2C) less money balances will be held in M2D) less money balances will be held in M1, but those held in M2 will remain unchanged 2Which of the following would lead to increased money balances in M1?A) more purchases made on the internetB) more credit card purchasesC) lower inflationary expectationsD) all of the above3A financial asset is considered less liquid ifA) it has a longer maturityB) it is issued by the government rather than a large corporation such as MicrosoftC) it earns a lower yieldD) none of the above4The Baumol-Tobin square-root formula for money demand applies primarily toA) the transactions motive of holding moneyB) the precautionary motive of holding moneyC) the speculative motive of holding moneyD) the store-of-value motive of holding money5According to the Baumol-Tobin square-root formula, the amount of money balances held for transaction willA) increase as interest rates increaseB) decrease as the cost of money transactions increasesC) increase less than proportionately to increases in incomeD) all of the above6The speculative demand for moneyA) will always increase proportionately to the precautionary demand for moneyB) will always increase proportionately to the transactions demand for moneyC) is affected by changes in bond yields but not equity yieldsD) cannot be easily separated from money demand for transaction or precaution7If the expected growth rate in real GDP for next year is 2.5%, we can anticipate that the demand for M1 money holdings willA) also increase by 2.5%B) increase by more than 2.5%C) increase by less than 2.5%D) remain constant8The income velocity of money is defined asA) real money supply divided by real GDPB) nominal money supply divided by nominal GDPC) nominal GDP divided by nominal money supplyD) national income divided by the currency outstanding9If the government increases the level of government purchases, we can expect thatA) interest rates and the income velocity of money will both increaseB) interest rates and the income velocity of money will both decreaseC) interest rates will increase but the income velocity of money will decreaseD) interest rates will increase but the income velocity of money will remain the same 10According to the quantity theory of money, in the long runA) the behavior of velocity is hard to predictB) a change in money supply will be followed by a proportional change in the price levelC) an increase in nominal money supply will result in a proportional decrease in velocityD) an increase in nominal money supply will result in a proportional increase in velocity。