曼昆经济学题库chapter24.docx

1、曼昆经济学题库chapter24Chapter 24The Influence of Monetary and Fiscal Policy on Aggregate Demand MULTIPLE CHOICE1. Fiscal policy affects the economy a. only in the short run. b. only in the long run. c. in both the short and long run. d. in neither the short nor long run.ANSWER: c. in both the short and lo

2、ng run.TYPE: M DIFFICULTY: 1 SECTION: 21.02. Which of the following is not a reason the aggregate demand curve slopes downward? As the price level increases a. real wages decline. b. real wealth declines. c. the interest rate increases. d. the exchange rate increases.ANSWER: a. real wages decline.TY

3、PE: M DIFFICULTY: 1 SECTION: 21.13. For the U.S. economy, which of the following is the most important reason for the downward slope of the aggregate-demand curve? a. the wealth effect b. the interest-rate effect c. the exchange-rate effect d. the real-wage effectANSWER: b. the interest-rate effectT

4、YPE: M DIFFICULTY: 1 SECTION: 21.14. Which of the following reasons for the downward slope of the aggregate demand curve would likely be more important for a small economy than for the United States? a. the wealth effect b. the interest-rate effect c. the exchange-rate effect d. the real-wage effect

5、ANSWER: c. the exchange-rate effectTYPE: M DIFFICULTY: 1 SECTION: 21.15. Which of the following is not a response that would result from a decrease in the price level and so help to explain the slope of the aggregate demand curve? a. When interest rates fall, Sleepwell Hotels decides to build some n

6、ew hotels. b. The exchange rate falls, so French restaurants in Paris buy more Iowa pork. c. Janet feels wealthier because of the price drop and so she decides to remodel her bathroom. d. With prices down and wages fixed by contract, Gatekeeper Computers decides to lay off workers.ANSWER: d. With pr

7、ices down and wages fixed by contract, Gatekeeper Computers decides to lay off workers.TYPE: M DIFFICULTY: 1 SECTION: 21.16. The wealth effect helps explain the downward slope of the aggregate demand curve. This effect is a. relatively important in the United States because expenditures on consumer

8、durables is very responsive to changes in wealth. b. relatively important in the United States because consumption spending is a large part of GDP. c. relatively unimportant in the United States because money holdings are a small part of consumer wealth. d. relatively unimportant because it takes a

9、large change in wealth to make a significant change in interest rates.ANSWER: c. relatively unimportant in the United States because money holdings are a small part of consumer wealth.TYPE: M DIFFICULTY: 1 SECTION: 21.17. Which of the following claims concerning the importance of effects that explai

10、n the slope of the aggregate demand curve is correct? a. The exchange-rate effect is relatively small because exports and imports are a small part of real GDP. b. The interest-rate effect is relatively small because investment spending is not very responsive to interest rate changes. c. The wealth e

11、ffect is relatively large because money holdings are a significant portion of most households wealth. d. None of the above is correct.ANSWER: a. The exchange-rate effect is relatively small because exports and imports are a small part of real GDP.TYPE: M DIFFICULTY: 1 SECTION: 21.18. Liquidity prefe

12、rence refers directly to Keynes theory concerning a. the effects of changes in money demand and supply on interest rates. b. the effects of changes in money demand and supply on exchange rates. c. the effects of wealth on expenditures. d. the difference between temporary and permanent changes in inc

13、ome.ANSWER: a. the effects of changes in money demand and supply on interest rates.TYPE: M DIFFICULTY: 1 SECTION: 21.19. According to liquidity preference theory, equilibrium in the money market is achieved by adjustments in a. the price level. b. the interest rate c. the exchange rate d. real wealt

14、h.ANSWER: b. the interest rateTYPE: M DIFFICULTY: 1 SECTION: 21.110. Liquidity preference theory is most relevant to the a. short run and supposes that the price level adjusts to bring money supply and money demand into balance. b. short run and supposes that the interest rate adjusts to bring money

15、 supply and money demand into balance. c. long run and supposes that the price level adjusts to bring money supply and money demand into balance. d. long run and supposes that the interest rate adjusts to bring money supply and money demand into balance.ANSWER: b. short run and supposes that the int

16、erest rate adjusts to bring money supply and money demand into balance.TYPE: M DIFFICULTY: 2 SECTION: 21.111. If expected inflation is constant, then when the nominal interest rate increases, the real interest rate a. increases by more than the change in the nominal interest rate. b. increases by th

17、e change in the nominal interest rate. c. decreases by the change in the nominal interest rate. d. decreases by more than the change in the nominal interest rate.ANSWER: b. increases by the change in the nominal interest rate.TYPE: M DIFFICULTY: 1 SECTION: 21.112. If expected inflation is constant a

18、nd the nominal interest rate increased 3 percentage points, the real interest rate would a. increase 3 percentage points. b. increase, but by less than 3 percentage points. c. decrease, but by less than 3 percentage points. d. decrease by 3 percentage points.ANSWER: a. increase 3 percentage points.T

19、YPE: M DIFFICULTY: 1 SECTION: 21.113. The theory of liquidity preference assumes that the nominal supply of money is determined by the a. level of real GDP. b. rate of inflation. c. interest rate. d. the Federal Reserve.ANSWER: d. the Federal Reserve.TYPE: M DIFFICULTY: 1 SECTION: 21.114. According

20、to the theory of liquidity preference, the money supply is a. positively related to the interest rate. b. negatively related to the interest rate. c. independent of the interest rate. d. negatively related to both the interest rate and the price level.ANSWER: c. independent of the interest rate.TYPE

21、: M DIFFICULTY: 1 SECTION: 21.115. According to liquidity preference theory, the money supply curve is a. upward sloping. b. downward sloping. c. vertical. d. horizontal.ANSWER: c. vertical.TYPE: M DIFFICULTY: 1 SECTION: 21.116. According to liquidity preference theory, the money supply curve would

22、shift right a. if the money demand curve shifted right. b. only if the Federal Reserve chose to increase it. c. if the interest rate increased. d. if the price level fell or the interest rate decreased.ANSWER: b. only if the Federal Reserve chose to increase it.TYPE: M DIFFICULTY: 1 SECTION: 21.117.

23、 According to liquidity preference theory, the money supply curve would shift if the Fed a. engaged in open-market transactions. b. changed the discount rate. c. changed the reserve requirement. d. did any of the above.ANSWER: d. did any of the above.TYPE: M DIFFICULTY: 1 SECTION: 21.118. When the F

24、ed buys government bonds, the reserves of the banking system a. increase, so the money supply increases. b. increase, so the money supply decreases. c. decrease, so the money supply increases. d. decrease, so the money supply decreases.ANSWER: a. increase, so the money supply increases.TYPE: M DIFFI

25、CULTY: 1 SECTION: 21.119. Liquidity refers to a. the relation between the price and interest rate of an asset. b. the risk of an asset relative to its selling price. c. the ease with which an asset is converted into a medium of exchange. d. the sensitivity of investment spending to changes in the in

26、terest rate.ANSWER: c. the ease with which an asset is converted into a medium of exchange.TYPE: M DIFFICULTY: 1 SECTION: 21.120. Which of the following is the most liquid asset? a. capital goods b. stocks and bonds with a low risk c. stocks and bonds with a high risk d. funds in a checking accountA

27、NSWER: d. funds in a checking accountTYPE: M DIFFICULTY: 1 SECTION: 21.121. People own or hold money primarily because it a. has a guaranteed nominal return. b. serves as a store of value. c. can directly be used to buy goods and services. d. functions as a unit of account.ANSWER: c. can directly be

28、 used to buy goods and services.TYPE: M DIFFICULTY: 1 SECTION: 21.122. When the interest rate increases, the opportunity cost of holding money a. increases, so the quantity of money demanded increases. b. increases, so the quantity of money demanded decreases. c. decreases, so the quantity of money

29、demanded increases. d. decreases, so the quantity of money demanded decreases.ANSWER: b. increases, so the quantity of money demanded decreases.TYPE: M DIFFICULTY: 1 SECTION: 21.123. When the interest rate decreases, the opportunity cost of holding money a. increases, so the quantity of money demand

30、ed increases. b. increases, so the quantity of money demanded decreases. c. decreases, so the quantity of money demanded increases. d. decreases, so the quantity of money demanded decreases.ANSWER: d. decreases, so the quantity of money demanded decreases.TYPE: M DIFFICULTY: 1 SECTION: 21.124. The o

31、pportunity cost of holding money a. decreases when the interest rate increases, so people desire to hold more of it. b. decreases when the interest rate increases, so people desire to hold less of it. c. increases when the interest rate increases, so people desire to hold more of it. d. increases wh

32、en the interest rate increases, so people desire to hold less of it.ANSWER: d. increases when the interest rate increases, so people desire to hold less of it.TYPE: M DIFFICULTY: 1 SECTION: 21.125. According to liquidity preference theory, the opportunity cost of holding money is a. the interest rate on bonds. b. the inflation rate. c. the cost o