International Economics II国际经济学Word文档格式.docx

1、C） Y - （C + I + G）. D） Y - （C + I - G）. E） None of the above. 3）For open economies, A） S = I. B） S = I + CA. C） S = I - CA. D） S I + CA. E） S B4）A U.S. citizen buys a newly issued share of stock in England, paying for his order with a check, which the British company deposits in its own U.S. bank ac

2、count in New York. How is this transaction accounted for in the balance of payments?A） financial account, U.S. asset export B） current account, U.S. service import C） current account, British good export D） financial account, British asset import E） financial account, U.S. asset import 5） The earnin

3、gs of a Spanish factory with British owners are A） counted in Spains GDP. B） are part of Britains GNP. C） are counted in BritainD） are part of SpainE） Only A and B. E 6）The Balance of payments is always balanced. Discuss. True. Every international transaction automatically enters the balance of paym

4、ents twice, once as a credit and once as a debit. Current account + financial account + capital account = 0 7） The balance of payments accounts seldom balance in practice. True. The main reasons are due to the fact that data collected or received from different sources may differ in coverage, accura

5、cy, and timing. In addition, data on services are not reliable as well as data from the financial account. Moreover, accurate measurements of international interest and dividend receipts are particularly difficult. 8）Fill in the following table:Chapter 13 Exchange Rates and the Foreign Exchange Mark

6、et: An Asset Approach1）How many British pounds would it cost to buy a pair of American designer jeans costing $45 if the exchange rate is 1.80 dollars per British pound?A） 10 British pounds B） 25 British pounds C） 20 British pounds D） 30 British pounds E） 40 British pounds 2） An appreciation of a co

7、untrys currency, A） decreases the relative price of its exports and lowers the relative price of its imports. B） raises the relative price of its exports and raises the relative price of its imports. C） lowers the relative price of its exports and raises the relative price of its imports. D） raises

8、the relative price of its exports and lowers the relative price of its imports. D 3） Which major actor is at the center of the foreign exchange market?A） corporations B） central banks C） commercial banks D） non-bank financial institutions C 4） What is the expected dollar rate of return on euro depos

9、its with todays exchange rate at $1.10 per euro, next years expected exchange rate at $1.166 per euro, the dollar interest rate at 10%, and the euro interest rate at 5%?A） 10% B） 11% C） -1% D） 0% B 5） What is the expected dollar rate of return on dollar deposits with todays expected exchange rate at

10、 $1.165 per euro, the dollar interest rate at 10%, and the euro interest rate at 5%? A 6）If the dollar interest rate is 10 percent, the euro interest rate is 6 percent, and the expected return on dollar depreciation against the euro is 4 percent, then A） an investor should invest only in dollars. B）

11、 an investor should invest only in euros. C） an investor should be indifferent between dollars and euros. D） It is impossible to tell given the information. E） All of the above. 7）Discuss the effects of a rise in the interest rate paid by euro deposits on the exchange rate. There are two effects to

12、consider. If we make the unrealistic assumption that the expected exchange rate will not change, then a rise in the interest rate paid by Euro deposits causes the dollar to depreciate. However, if the expected exchange rate were to rise, then the current exchange rate would also rise. （See figure 13

13、-6 from the text.）8） Calculate the interest rate in the euro zone if interest parity condition holds, for the following 15 cases:Chapter 14 Money, Interest Rates, and Exchange Rates1）Money includes A） currency. B） checking deposits held by households and firms. C） deposits in the foreign exchange ma

14、rkets. D） Both A and B. E） A, B, and C. D2）The aggregate money demand depends on A） the interest rate. B） the price level. C） real national income. D） All of the above. E） Only A and C. 3）Using a figure describing both the U.S. money market and the foreign exchange market, analyze the effects of a t

15、emporary increase in the European money supply on the dollar/euro exchange rate. An increase in the European money supply will reduce the interest rate on the euro and thus will cause the schedule of the expected euro return expresses in dollars to shift down, causing a reduction in the dollar/euro

16、exchange rate, i.e., an appreciation of the U.S. Dollar. The euro depreciates against the dollar. The U.S. money demand and money supply are not going to be affected, and thus the interest rate in the U.S. will remain the same.4） A permanent increase in a countrys money supply A） causes a more than

17、proportional increase in its price level. B） causes a less than proportional increase in its price level. C） causes a proportional increase in its price level. D） leaves its price level constant in long-run equilibrium. C5）After a permanent increase in the money supply, A） the exchange rate overshoo

18、ts in the short run. B）the exchange rate overshoots in the long run. C） the exchange rate smoothly depreciates in the short run. D） the exchange rate smoothly appreciates in the short run. Although the price levels appear to display short-run stickiness in many countries, a change in the money suppl

19、y creates immediate demand and cost pressures that eventually lead to future increase in the price level. The statement is true. The pressures come from three main sources: excess demand for output and labor; inflationary expectations; and, raw material prices. 7）The long run effects of money supply

20、 change:A） ambiguous effect on the long-run values of the interest rate or real output, a proportional change in the price levels long-run value in the opposite direction. B） proportional effect on the long-run values of the interest rate or real output, a proportional change in the price levels lon

21、g-run value in the same direction. C） no effect on the long-run values of the interest rate or real output, a proportional change in the price levelD） no effect on the long-run values of the interest rate or real output, no change in the price levels long-run value. E） ambiguous effect on the long-r

22、un values of the interest rate or real output, A disproportional change in the price levelChapter 15 Price Levels and the Exchange Rate in the Long Run1）Under Purchasing Power Parity, A） E$/E = PUS/PE. B） E$/E = PE/PES. C） E$/E = PUS + PE. D） E$/E = PUS - PE. 2）Assuming relative PPP, fill in the tab

23、le below:3） Under PPP （and by the Fisher Effect）, all else equal, A） a rise in a countrys expected inflation rate will eventually cause a more-than proportional rise in the interest rate that deposits of its currency offer in order to accommodate for the higher inflation. B） a fall in a countrys exp

24、ected inflation rate will eventually cause an equal rise in the interest rate that deposits of its currency offer. C） a rise in a countryD） a rise in a countrys expected inflation rate will eventually cause a less than proportional rise in the interest rate that deposits of its currency offer to acc

25、ommodate the rise in expected inflation. 4）Describe the chain of events leading to exchange rate determination for the following cases:（a） An Increase in U.S. money supply（d） Increase in growth rate of U.S. money supply（c） Increase in world relative demand for U.S. products（d） Increase in relative U

26、.S. output supply Chain of events leading to exchange rate determination: = （Pus/PE）Increase in U.S. money supply: Pus rises in proportion to the money supply; q remains the same. All dollar prices will rise （including dollar price of euro）.Increase in growth rate of U.S. money supply: Inflation rate, dollar interest rate, Pus, E, rises in proportion to Pus.Increase in world relative demand for U.S. products: E falls, and q does as well.Increase in relative U.S. output supply: Dollar depreciates, lowers r