大学宏观经济学第三版英文答案chapter 26.docx

大学宏观经济学第三版英文答案chapter 26.docx

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大学宏观经济学第三版英文答案chapter26

20XX年复习资料

大

学

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习

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料

专业：

班级：

科目老师：

日期：

SOLUTIONSTOTEXTPROBLEMS:

QuickQuizzes

1.Astockisaclaimtopartialownershipinafirm.Abondisacertificateofindebtedness.Theyaredifferentinnumerousways:

（1）abondpaysinterest（afixedpaymentdeterminedwhenthebondisissued）,whileastockpaysdividends（ashareofthefirm’sprofitsthatcanincreaseifthefirmismoreprofitable）;

（2）abondhasafixedtimetomaturity,whileastocknevermatures;and（3）ifacompanythathasissuedbothstockandbondsgoesbankrupt,thebondholdersgetpaidoffbeforethestockholders,sostockshavegreaterriskandpotentiallygreaterreturnthanbonds.Stockandbondsaresimilarinthatbotharefinancialinstrumentsthatareusedbycompaniestoraisemoneyforinvestment,botharetradedonexchanges,botharesubjecttocreditrisk,andthereturnstobotharetaxed（usually）.

2.Privatesavingistheamountofincomethathouseholdshaveleftafterpayingtheirtaxesandpayingfortheirconsumption.Publicsavingistheamountoftaxrevenuethatthegovernmenthasleftafterpayingforitsspending.Nationalsavingisequaltothetotalincomeintheeconomythatremainsafterpayingforconsumptionandgovernmentpurchases.Investmentisthepurchaseofnewcapital,suchasequipmentorbuildings.

Thesetermsarerelatedintwoways:

（1）Nationalsavingisthesumofpublicsavingandprivatesaving,bydefinition.

（2）Nationalsavingequalsinvestment.

3.IfmoreAmericansadopteda“livefortoday”approachtolife,theywouldspendmoreandsaveless.Thiswouldshiftthesupplycurvetotheleftinthemarketforloanablefunds,causingtheinterestratetorise.Inequilibrium,therewouldbelesssavingandinvestment,andahigherinterestrate.

QuestionsforReview

1.Thefinancialsystem'sroleistohelpmatchoneperson'ssavingwithanotherperson'sinvestment.Twomarketsthatarepartofthefinancialsystemarethebondmarket,throughwhichlargecorporations,thefederalgovernment,orstateandlocalgovernmentsborrow,andthestockmarket,throughwhichcorporationssellownershipshares.Twofinancialintermediariesarebanks,whichtakeindepositsandusethedepositstomakeloans,andmutualfunds,whichsellsharestothepublicandusetheproceedstobuyaportfoliooffinancialassets.

2.Itisimportantforpeoplewhoownstocksandbondstodiversifytheirholdingsbecausethentheywillhaveonlyasmallstakeineachasset,whichreducesrisk.Mutualfundsmakesuchdiversificationeasybyallowingasmallinvestortopurchasepartsofhundredsofdifferentstocksandbonds.

3.Nationalsavingistheamountofanation'sincomethatisnotspentonconsumptionorgovernmentpurchases.Privatesavingistheamountofincomethathouseholdshaveleftafterpayingtheirtaxesandpayingfortheirconsumption.Publicsavingistheamountoftaxrevenuethatthegovernmenthasleftafterpayingforitsspending.Thethreevariablesarerelatedbecausenationalsavingequalsprivatesavingpluspublicsaving.

4.Investmentreferstothepurchaseofnewcapital,suchasequipmentorbuildings.Itisequaltonationalsaving.

5.Achangeinthetaxcodethatmightincreaseprivatesavingistheintroductionofaconsumptiontaxtoreplacetheincometax.Sinceaconsumptiontaxwouldnottaxthereturnstosaving,itwouldincreasethesupplyofloanablefunds,thusloweringinterestratesandincreasinginvestment.

6.Agovernmentbudgetdeficitariseswhenthegovernmentspendsmorethanitreceivesintaxrevenue.Sinceagovernmentbudgetdeficitreducesnationalsaving,itraisesinterestrates,reducesprivateinvestment,andthusreduceseconomicgrowth.

ProblemsandApplications

1.a.ThebondofaneasternEuropeangovernmentwouldpayahigherinterestratethanthebondoftheU.S.governmentbecausetherewouldbeagreaterriskofdefault.

b.Abondthatrepaystheprincipalin220XXXX5wouldpayahigherinterestratethanabondthatrepaystheprincipalin20XXXXbecauseithasalongertermtomaturity,sothereismorerisktotheprincipal.

c.AbondfromasoftwarecompanyyouruninyourgaragewouldpayahigherinterestratethanabondfromCoca-Colabecauseyoursoftwarecompanyhasmorecreditrisk.

d.AbondissuedbythefederalgovernmentwouldpayahigherinterestratethanabondissuedbyNewYorkstatebecauseaninvestordoesnothavetopayfederalincometaxonthebondfromNewYorkstate.

2.Manyanswersarepossible.Price-earningsratiosvary.Ahighprice-earningsratiomightindicateeitherthatpeopleexpectearningstoriseinthefutureorthatthestockisovervalued.Alowprice-earningsratiomightindicateeitherthatpeopleexpectearningstofallorthatthestockisundervalued.

3.Thestockmarketdoeshaveasocialpurpose.Firmsobtainfundsfor