国际经济学第九版英文课后答案 第17单元.docx
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国际经济学第九版英文课后答案第17单元
*CHAPTER17
(CoreChapter)
THEINCOMEADJUSTMENTMECHANISMANDSYNTHESIS
OFAUTOMATICADJUSTMENTS
OUTLINE
17.1Introduction
17.2IncomeDeterminationinaClosedEconomy
17.2aDeterminationoftheEquilibriumNationalIncomeinaClosedEconomy
17.2bTheMultiplierinaClosedEconomy
17.3IncomeDeterminationinaSmallOpenEconomy
17.3aImportFunction
CaseStudy17-1:
IncomeElasticityofImportsandExportsintheLeadingIndustrialCountries
17.3bDeterminationofEquilibriumNationalIncomeinaSmallOpenEconomy
17.3cGraphicalDeterminationoftheEquilibriumNationalIncome
CaseStudy17-2:
Savings,Investments,andtheCurrentAccountBalanceintheLeadingIndustrialNations
17.3dForeign-TradeMultiplier
17.4ForeignRepercussions
CaseStudy17-3:
GrowthinUnitedStatesandAbroad,andU.S.CurrentAccountDeficits
CaseStudy17-4:
GrowthandCurrentAccountBalanceinDevelopingCountries
17.5AbsorptionApproach
CaseStudy17-5:
EffectoftheAsianFinancialCrisisoftheLate1990sonOECDCountries
17.6MonetaryAdjustmentsandSynthesisofAutomaticAdjustments
17.6aMonetaryAdjustments
17.6bSynthesisofAutomaticAdjustments
CaseStudy17-6:
InterdependenceintheWorldEconomy
17.6cDisadvantagesofAutomaticAdjustments
Appendix:
A17.1DerivationofForeignTradeMultiplierswithForeignRepercussions
A17.2TheTransferProblemOnceAgain
KeyTerms
ClosedeconomyImportfunction
Equilibriumlevelofnationalincome(YE)Marginalpropensitytoimport(MPM)
DesiredorplannedinvestmentAveragepropensitytoimport(MPM)
Marginalpropensitytoconsume(MPC)Incomeelasticityofimports(ny)
ConsumptionfunctionExportfunction
SavingfunctionForeigntrademultiplier(k')
Marginalpropensitytosave(MPS)Foreignrepercussions
InvestmentfunctionAbsorptionapproach
Multiplier(k)Synthesisofautomaticadjustments
LectureGuide:
1.InthefirstlectureonChapter17(acorechapter),Iwouldcoversections1and2andassignproblems1to4.Section2isareviewofprinciplesofeconomicsbutmyexperienceisthattheaveragestudentneedsittoclearlyunderstandthematerialintherestofthechapter.
2.Inthesecondlecture,Iwouldcoversections3and4andassignproblems3to8.Mostothertextsdonotdealwithforeigntrademultipliersinanygreatdetailbecauseofthedifficultyofderivingthem.However,theirmeaninganduseisimportantandtheycansstillbediscussedwithoutderivingthem(theirderivationisinsectionA17.1oftheappendix,whichcanbemadeoptionalforthebestandmosteagerstudentsintheclass).
3.Inthethirdlecture,Iwouldcoversections5and6andassignproblems9to14.Thesetwosectionsareveryimportantanddifficult.
AnswertoProblems:
1.SeeFigure1onthenextpage.
TheequilibriumlevelofnationalincomeisYE=1,000andisgivenbypointEatwhich
theC+Ifunctioncrossesthe45°line.
2.a.S=-100+0.2Y.
Thesavingfunctionisobtainedbysubtractingverticallytheconsumptionfunctionfrom
the45˚line
b.SeeFigure2.
TheequilibriumlevelofnationalincomeisYE=1,000andisgivenbypointEatwhich
thepositively-slopedSfunctioncrossesthehorizontalIfunction.
3.SeeFigure3.
ThenewequilibriumlevelofnationalincomeisYE=1,500andisgivenbypointE'at
whichthenewC+I'functioncrossesthe45°line.
4.a.SeeFigure4onthenextpage.
ThenewequilibriumlevelofnationalincomeisYE=1,500andisgivenbypointE'at
whichtheSfunctioncrossesthenewI'function.
b.k=1/MPS=1/(1/5)=5.
5.a.S(Y)+M(Y)=-100+0.2Y+150+0.2Y=50+0.4Y
I+X=100+350=450
50+0.4Y=450;therefore,YE=400/0.4=1000.
b.SeeFigure5.
TheequilibriumlevelofnationalincomeisYE=1,000andisgivenbypointEatwhich
thepositively-slopedS+MfunctioncrossesthehorizontalI+Xfunction.
6.SeeFigure6.
TheequilibriumlevelofnationalincomeisYE=1,000andisgivenbypointEatwhich
thenegatively-slopedX-Mfunctioncrossesthepositively-slopedS-Ifunction.
7.a.I+X'=100+350+200=650
50+0.4Y=650;
therefore,YE'=1500
AtYE'=1500,M=150+0.2Y=150+(0.2)(1500)=450
X'-M=550-450=100
SeeFigure7onpage155.
b.I'+X=650
YE'=1500
X-M=350-450=-100
SeeFigure8.
c.X'+I'=550+300=850
50+0.4Y=850
therefore,YE"=2000
AtYE"=2000,M=150+0.2Y=150+(0.2)(2000)=550
X'-M=550-550=0
SeeFigure9onpage155.
8.a.S'(Y)+M(Y)=-200+0.2Y+150+0.2Y=-50+0.4Y
I+X=100+350=450
-50+0.4Y=450
therefore,YE'=1250
AtYE'=1250,M=150+0.2Y=150+(0.2)(1250)=400
X-M=350-400=-50S
SeeFigure10onpage157.
b.S(Y)+M'(Y)=-100+0.2Y+50+0.2Y=-50+0.4Y
-50+0.4Y=450
therefore,YE'=1,250
atYE'=1250,M'=50+0.2Y=50+(0.2)(1,250)=300
X-M'=350-300=50(seeFigure11).
c.S'(Y)+M'(Y)=-200+0.2Y+50+0.2Y=-150+0.4Y
-150+0.4Y=450
therefore,YE"=1500
atYE"=1500,M'=50+0.2Y=50+(0.2)(1500)=350
X-M'=350-350=0(seeFigure12).
9.a.
K"=
1
=
1
=
1
=
1.88
MPS1+MPM1+MPM2(MPS1/MPS2)
0.20+0.20+0.10(0.20/0.15)
0.533
YE=(X)(k")=(200)(1.88)=376
M=(YE)(MPM1)=(376)(0.20)=75.2
S=(YE)(MPS1)=(376)(0.20)=75.2
X=S+M=75.2+75.2=150.4sothat
X-M=75.2=Nation1'stradesurplus.
b.
k*=
1+MPM2/MPS2
=
1+0.10/0.15
=
1.667
=
3.13
MPS1+MPM1+MPM2(MPS1/MPS2)
0.533
0.533
YE=(I)(k*)=(200)(3.13)=626
M=(YE)(MPM1)=(626)(0.20)=125.2
S=(YE)(MPS1)=(626)(0.20)=125.2
200+X=125.2+125.2
andX=50.4sothat
X-M=50.4-125.2=-74.8
10.
k**=
MPM2/MPS2
=
0.10/0.15
=
0.67
=
1.25
MPS1+MPM1+MPM2(MPS1/MPS2)
0.533
0.533
YE=(I*)(k**)(200)(1.25)=250
M=(YE)(MPM1)=(250)(0.20)=50=S
X=S+M=100
X-M=5
11.
k**=
0.5
=
0.95
0.53
YE=(I*)(k**)=(200)(0.95)=190
M=(YE)(MPM1)=(190)(0.15)=28.5=S
X=S+M=57
X-M=28.5
12.TheX-MfunctionwouldshiftupasinFigure9withoutfullemployment.Withfullemployment,thedepreciationwillresultininflationandareturntotheconditionofFigure8(i.e.,theX-Mfunctionwouldshiftupandthendowntoitsoriginalposition),unlessdomesticabsorptionissomehowreduced.
13.Onereasonisthatthegovernmentsectorisnotincluded.Anotherreasonisifthenationisnotinequilibrium.
14.Theadvantagesofautomaticoverpolicyadjustmenttocorrectatradedisequilibriumare:
(1)adjustmentbeginstooperateevenbeforetheproblemisrecognized;
(2)therearenopossibilitiesofpolicymistakes;and(3)theadjustmentwillcontinueuntilthetradedisequilibriumisentirelyeliminated.Ontheotherhand,adjustmentpoliciescanonlybeenactedaftertheproblemisrecognized.Therearethendelaystoenactpoliciesandforthemtohaveeffect.Thus,bythetimeadjustmentpoliciesbecomeeffectivethenationmaynotlongerfacetheproblemormayfacetheoppositeproblem.Wrongpoliciescanalsobeadopted.
App.1a.I+m*Y*=sY+mY
I*+mY=s*Y*+m*Y*
X+m*Y*=sY-mY
-X+mY=(s*+m*)Y*
-X+mY=Y*
s*+m*
X+m*(-X+mY)=sY+mY
s*+m*
X+-m*X+m*mY=(s+m)Y
s*+m+
s*X+m*X-m*X+m*mY=(s+m)(s*+m*)Y
s*X+m*mY=(s+m)(s*+m*)Y
s*X=[(s+m)(s*+m*)-m*m]Y
X=[]
Ys*
Y=s*=1
Xss*+mm*+ms*+m*s-m*ms+m+m*s/s*
b.k"=1
s+m
thatis,k"isalreadyaforeignrepercussion.
App.2.Mostpetroleumexportingnations,notablySaudiArabia,Libya,andKuwaitcouldnotspendalloftheirpetroleumearningsonincreasedimportsfrompetroleumimportingcountriesduringthe1970s.Mostunspentearningswereusedforportfoliopurchasesinthedevelopednations,especiallyintheU.S.,throughtheEurodollarmarket.Atthesametime,mostoil-importingnationsdeflatedtheireconomiestoreducetheiroilbillandbalanceofpaymentsdifficulties.Thesharpdeclineinpetroleumsince1981completelyeliminatedtheexcessearningsofmostOPECnationssothatthetransferproblemdisappeared.
Multiple-choiceQuestions:
1.Inordertoisolatetheincomeadjustmentmechanism,weassumethat:
a.thenationoperatesunderafixedexchangeratesystem
b.allprices,wages,andinterestratesareconstant
c.thenationoperatesatlessthanfullemployment
*d.alloftheabove
2.Themarginalpropensitytoconsumemeasures:
a.theratioofimportstoincome
b.theratioofincometoimports
*c.thechangeinimportsoverthechangeinincome
d.thechangeinincomeoverthechangeinimports
3.Theincomeelasticityofimportsisgivenby:
a.thepercentagechangeinincomeoverthepercentagechangeinimports
b.thechangeinimportsoverthechangeinincome
*c.themarginalpropensitytoimportovertheaveragepropensitytoimport
d.theaveragepropensitytoimportoverthemarginalpropensitytoimport
4.Theequilibriumlevelofnationalincomeinanopeneconomyisgivenby:
a.I+X=S+M
b.X-M=S-I
c.I+(X-M)=S
*d.alloftheabove
5.IfMPS=0.2andMPM=0.3,theforeigntrademultiplieris:
a.5
b.3.3
c.3
*d.2
6.WhenSexceedsI,anopeneconomyhasatradebalance:
*a.surplus
b.deficit
c.equilibrium
d.anyoftheabove
7.TheS-Ifunctionrisesbecause:
a.risingIaresubtractedfromconstantS
*b.constantIaresubtractedfromrisingS
c.risingIaresubtractedfromrisingS
d.constantIareaddedtofallingS
8.AnautonomousfallinMfromaconditionofequilibriuminnationalincomeandinthe
tradebalanceresultsinthenation'sincome:
a.risinganditstradeba