国际经济学第九版英文课后答案 第17单元.docx

1、国际经济学第九版英文课后答案 第17单元*CHAPTER 17(Core Chapter)THE INCOME ADJUSTMENT MECHANISM AND SYNTHESISOF AUTOMATIC ADJUSTMENTSOUTLINE17.1 Introduction17.2 Income Determination in a Closed Economy 17.2a Determination of the Equilibrium National Income in a Closed Economy 17.2b The Multiplier in a Closed Economy1

2、7.3 Income Determination in a Small Open Economy 17.3a Import Function Case Study 17-1: Income Elasticity of Imports and Exports in the Leading Industrial Countries 17.3b Determination of Equilibrium National Income in a Small Open Economy 17.3c Graphical Determination of the Equilibrium National In

3、come Case Study 17-2: Savings, Investments, and the Current Account Balance in the Leading Industrial Nations 17.3d Foreign-Trade Multiplier 17.4 Foreign Repercussions Case Study 17-3: Growth in United States and Abroad, and U.S. Current Account Deficits Case Study 17-4: Growth and Current Account B

4、alance in Developing Countries17.5 Absorption Approach Case Study 17-5: Effect of the Asian Financial Crisis of the Late 1990s on OECD Countries17.6 Monetary Adjustments and Synthesis of Automatic Adjustments 17.6a Monetary Adjustments 17.6b Synthesis of Automatic Adjustments Case Study 17-6: Interd

5、ependence in the World Economy 17.6c Disadvantages of Automatic AdjustmentsAppendix: A17.1 Derivation of Foreign Trade Multipliers with Foreign Repercussions A17.2 The Transfer Problem Once AgainKey Terms Closed economy Import functionEquilibrium level of national income (YE) Marginal propensity to

6、import (MPM)Desired or planned investment Average propensity to import (MPM)Marginal propensity to consume (MPC) Income elasticity of imports (ny)Consumption function Export functionSaving function Foreign trade multiplier (k)Marginal propensity to save (MPS) Foreign repercussionsInvestment function

7、 Absorption approachMultiplier (k) Synthesis of automatic adjustmentsLecture Guide:1. In the first lecture on Chapter 17 (a core chapter), I would cover sections 1 and 2 and assign problems 1 to 4. Section 2 is a review of principles of economics but my experience is that the average student needs i

8、t to clearly understand the material in the rest of the chapter.2. In the second lecture, I would cover sections 3 and 4 and assign problems 3 to 8. Most other texts do not deal with foreign trade multipliers in any great detail because of the difficulty of deriving them. However, their meaning and

9、use is important and they can s still be discussed without deriving them (their derivation is in section A17.1 of the appendix, which can be made optional for the best and most eager students in the class).3. In the third lecture, I would cover sections 5 and 6 and assign problems 9 to 14. These two

10、 sections are very important and difficult.Answer to Problems:1. See Figure 1 on the next page. The equilibrium level of national income is YE = 1,000 and is given by point E at which the C+I function crosses the 45 line.2. a. S=-100+0.2Y. The saving function is obtained by subtracting vertically th

11、e consumption function from the 45 line b. See Figure 2. The equilibrium level of national income is YE = 1,000 and is given by point E at which the positively-sloped S function crosses the horizontal I function. 3. See Figure 3. The new equilibrium level of national income is YE = 1,500 and is give

12、n by point E at which the new C+I function crosses the 45 line.4. a. See Figure 4 on the next page. The new equilibrium level of national income is YE = 1,500 and is given by point E at which the S function crosses the new I 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

13、+X=100+350=450 50+0.4Y=450; therefore, YE=400/0.4=1000. b. See Figure 5. The equilibrium level of national income is YE = 1,000 and is given by point E at which the positively-sloped S+M function crosses the horizontal I+X function. 6. See Figure 6. The equilibrium level of national income is YE = 1

14、,000 and is given by point E at which the negatively-sloped X-M function crosses the positively-sloped S-I function. 7. a. I+X=100+350+200=650 50+0.4Y=650; therefore, YE=1500 At YE=1500, M=150+0.2Y=150+(0.2)(1500)=450 X-M=550-450=100 See Figure 7 on page 155. b. I+X=650 YE=1500 X-M=350-450=-100 See

15、Figure 8. c. X+I=550+300=850 50+0.4Y=850 therefore, YE=2000 At YE=2000, M=150+0.2Y=150+(0.2)(2000)=550 X-M=550-550=0 See Figure 9 on page 155.8. 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 At YE=1250, M=150+0.2Y=150+(0.2)(1250)=400 X-M=350-400=-50 S See F

16、igure 10 on page 157. b. S(Y)+M(Y)=-100+0.2Y+50+0.2Y=-50+0.4Y -50+0.4Y=450 therefore, YE=1,250 at YE=1250, M=50+0.2Y=50+(0.2)(1,250)=300 X-M=350-300=50 (see Figure 11). c. S(Y)+M(Y)=-200+0.2Y+50+0.2Y=-150+0.4Y -150+0.4Y=450 therefore, YE=1500 at YE=1500, M=50+0.2Y=50+(0.2)(1500)=350 X-M=350-350=0 (s

17、ee Figure 12). 9. a. K=1= 1= 1= 1.88MPS1+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=150.4 so that X-M=75.2=Nation 1s trade surplus. b. k* =1+MPM2/MPS2= 1+0.10/0.15= 1.667= 3.13 MPS1+MPM1+

18、MPM2(MPS1/MPS2)0.5330.533 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 and X=50.4 so that X-M=50.4-125.2=-74.810. k*=MPM2/MPS2= 0.10/0.15= 0.67= 1.25MPS1+MPM1+MPM2(MPS1/MPS2) 0.5330.533 YE=(I*)(k*)(200)(1.25)=250 M=(YE)(MPM1)=(250)(0.20)=

19、50=S X=S+M =100 X-M=511. k*=0.5= 0.950.53 YE=(I*)(k*)=(200)(0.95)=190 M=(YE)(MPM1)=(190)(0.15)=28.5=S X=S+M=57 X-M=28.512. The X-M function would shift up as in Figure 9 without full employment. With full employment, the depreciation will result in inflation and a return to the condition of Figure 8

20、 (i.e., the X-M function would shift up and then down to its original position), unless domestic absorption is somehow reduced. 13. One reason is that the government sector is not included. Another reason is if the nation is not in equilibrium.14. The advantages of automatic over policy adjustment t

21、o correct a trade disequilibrium are: (1) adjustment begins to operate even before the problem is recognized; (2) there are no possibilities of policy mistakes; and (3) the adjustment will continue until the trade disequilibrium is entirely eliminated. On the other hand, adjustment policies can only

22、 be enacted after the problem is recognized. There are then delays to enact policies and for them to have effect. Thus, by the time adjustment policies become effective the nation may not longer face the problem or may face the opposite problem. Wrong policies can also be adopted.App. 1a. I + m*Y* =

23、 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*mY X = Y s* Y = s* = 1 X ss* + mm* + m

24、s* + m*s - m*m s + m + m*s/s* b. k = 1 s + m that is, k is already a foreign repercussion.App. 2. Most petroleum exporting nations, notably Saudi Arabia, Libya, and Kuwait could not spend all of their petroleum earnings on increased imports from petroleum importing countries during the 1970s. Most u

25、nspent earnings were used for portfolio purchases in the developed nations, especially in the U.S., through the Eurodollar market. At the same time, most oil-importing nations deflated their economies to reduce their oil bill and balance of payments difficulties. The sharp decline in petroleum since

26、 1981completely eliminated the excess earnings of most OPEC nations so that the transfer problem disappeared.Multiple-choice Questions:1. In order to isolate the income adjustment mechanism, we assume that: a. the nation operates under a fixed exchange rate systemb. all prices, wages, and interest r

27、ates are constantc. the nation operates at less than full employment*d. all of the above2. The marginal propensity to consume measures: a. the ratio of imports to incomeb. the ratio of income to imports*c. the change in imports over the change in incomed. the change in income over the change in impo

28、rts3. The income elasticity of imports is given by:a. the percentage change in income over the percentage change in importsb. the change in imports over the change in income*c. the marginal propensity to import over the average propensity to importd. the average propensity to import over the margina

29、l propensity to import4. The equilibrium level of national income in an open economy is given by:a. I + X = S + Mb. X - M = S - Ic. I + (X-M) = S*d. all of the above5. If MPS=0.2 and MPM=0.3, the foreign trade multiplier is: a. 5b. 3.3c. 3*d. 26. When S exceeds I, an open economy has a trade balance

30、: *a. surplusb. deficitc. equilibriumd. any of the above 7. The S-I function rises because:a. rising I are subtracted from constant S*b. constant I are subtracted from rising Sc. rising I are subtracted from rising Sd. constant I are added to falling S 8. An autonomous fall in M from a condition of equilibrium in national income and in the trade balance results in the nations income:a. rising and its trade ba