货币银行学题库国际商学经济学 28.docx

1、货币银行学题库国际商学经济学 281Chapter 27Money and Inflation2Multiple Choice1) The condition of a continually rising price level is defined as(a) stagflation.(b) stagnation.(c) disinflation.(d) inflation.Answer: DQuestion Status: Previous Edition2) The economist who proposed that, “Inflation is always and everyw

2、here a monetary phenomenon” was(a) John Maynard Keynes.(b) John R. Hicks.(c) Milton Friedman.(d) Franco Modigliani.Answer: CQuestion Status: Previous Edition3) Monetarists and Keynesians both agree with Milton Friedman that(a) the demand for money is insensitive to changes in the interest rate.(b) v

3、elocity is predictable and fairly constant.(c) inflation is a monetary phenomenon.(d) the price level and the money supply are unrelated. (e) all of the above are true.Answer: CQuestion Status: Previous Edition4) Complete Milton Friedmans famous proposition: “Inflation is always and everywhere a _ p

4、henomenon.”(a) monetary(b) political(c) policy(d) budgetaryAnswer: AQuestion Status: Previous Edition5) At first cut, the simple solution to fighting inflation is(a) reducing the growth rate of the money supply.(b) limiting the number of terms that politicians can serve in elective office.(c) return

5、ing the economy to barter by prohibiting the use of fiat money.(d) to impose price controls on businesses that attempt to raise prices.Answer: AQuestion Status: Previous Edition6) “How do we prevent the inflationary fire from igniting again and stop the roller coaster ride in the inflation rate of t

6、he last 40 years?” Milton Friedmans famous proposition suggests the simple solution:(a) reduce the number of terms that politicians are allowed to serve.(b) reduce the growth rate of the money supply.(c) reduce the marginal tax rate on low-income wage earners.(d) increase the marginal tax rates on b

7、usinesses that hike prices in excess of 5 percent per year.Answer: BQuestion Status: Revised7) Milton Friedmans proposition concerning the cause of inflation implies a simple solution to the inflation problem:(a) reduce government budget deficits.(b) limit the ability of fiscal policymakers to bring

8、 pressure to bear on the monetary authority.(c) limit the number of terms that politicians are allowed to serve.(d) reduce the growth rate of the money supply.Answer: DQuestion Status: Previous Edition8) Milton Friedmans proposition that inflation is always and everywhere a monetary phenomenon holds

9、 only if(a) government budget deficits do not rise continually.(b) the unemployment rate does not rise continually.(c) the price level rises continually.(d) the United States does not experience more than one negative supply shock per decade.Answer: CQuestion Status: Previous Edition9) The monetaris

10、ts proposition that inflation is always and everywhere a monetary phenomenon holds only if(a) government budget deficits do not rise continually.(b) the unemployment rate does not rise continually.(c) the price level rises continually.(d) the United States does not experience more than one negative

11、supply shock per decade.Answer: CQuestion Status: Previous Edition10) The Keynesians are willing to accept the monetarists proposition that inflation is a monetary phenomenon under the condition that(a) government budget deficits do not rise continually.(b) the unemployment rate does not rise contin

12、ually.(c) the price level rises continually.(d) the United States does not experience more than one negative supply shock per decade.Answer: CQuestion Status: Previous Edition11) Inflation occurs whenever(a) the price level rises.(b) the money supply increases.(c) the price level rises continuously

13、over a period of time.(d) the price level falls continuously over a period of time.(e) none of the above occur.Answer: CQuestion Status: Study Guide12) Evidence strongly supports the view that countries with high inflation also have(a) the lowest nominal interest rates.(b) the highest rates of money

14、 growth.(c) the smallest budget deficits.(d) the lowest interest rates.Answer: BQuestion Status: Previous Edition13) Countries with the highest inflation rates are likely to have(a) the highest rates of money growth.(b) large budget deficits.(c) the lowest interest rates.(d) both (a) and (b) of the

15、above.Answer: DQuestion Status: Previous Edition14) Countries with the highest inflation rates are likely to have(a) the highest rates of money growth.(b) small budget deficits relative to GDP.(c) the lowest interest rates.(d) all of the above.Answer: AQuestion Status: Previous Edition15) The propos

16、ition that inflation is the result of a high rate of money growth is(a) not supported by evidence from the German hyperinflation.(b) held only by sociologists and is no longer believed by economists.(c) supported by evidence from inflationary episodes throughout the world.(d) largely a political fab

17、rication designed to make the Fed a scapegoat for poor fiscal policy.Answer: CQuestion Status: Revised16) Which of the following would provide the strongest evidence that rapid money growth is the driving force behind inflation?(a) An endogenous increase in the money supply that preceded the onset o

18、f inflation(b) An exogenous increase in the money supply that preceded the onset of inflation(c) An endogenous increase in the money supply that lagged the onset of inflation(d) An exogenous increase in the money supply that lagged the onset of inflationAnswer: BQuestion Status: Previous Edition17)

19、The German hyperinflation of 19211923 provides important support for the view that high money growth causes high inflation because(a) the growth in the German money supply appears to have been due to exogenous forces.(b) reverse causation in this case is highly implausible.(c) it is hard to imagine

20、a third factor that could have been the driving force behind both inflation and explosion in the German money supply.(d) of all of the above.(e) of only (a) and (b) of the above.Answer: DQuestion Status: Previous Edition18) The initiating causes of the inflationary monetary policy adopted by the Ger

21、man authorities in the early 1920s included(a) the governments unwillingness to raise taxes to finance war reparations.(b) the governments inability to borrow sufficient funds to finance its expenditures.(c) the governments unwillingness to print additional fiat currency.(d) all of the above.(e) onl

22、y (a) and (b) of the above.Answer: EQuestion Status: New19) The German authorities in the early 1920s appear to have resorted to increasing the money supply as a way of raising revenues because(a) raising taxes would have been politically unpopular.(b) raising taxes would have been unconstitutional.

23、(c) there was no way to collect taxes in those days.(d) none of the above.Answer: AQuestion Status: Previous Edition20) The German hyperinflation of the 1920s supports the proposition that excessive monetary growth causes inflation and not the other way around since the increase in monetary growth a

24、ppears to have been(a) unintentional.(b) intentional.(c) simultaneous.(d) exogenous.(e) endogenous.Answer: DQuestion Status: Study Guide21) Evidence for Latin American countries over the ten-year period 19891999 indicates that(a) in every case in which a countrys inflation rate is extremely high for

25、 any sustained period of time, its rate of money growth is extremely high.(b) a country can experience high inflation for a sustained period of time without an increase in its rate of money growth.(c) a country can experience a significant increase in its money supply for a sustained period of time

26、without an increase in its rate of inflation.(d) both (b) and (c) above are possible.Answer: AQuestion Status: Revised22) A one-time increase in the price level(a) is rarely reported by the news media as inflation, but is nevertheless considered to be inflation by economists.(b) is regularly reporte

27、d by the news media as inflation, but is not considered to be inflation by economists.(c) is rarely reported by the news media as inflation because it is not considered to be inflation by economists.(d) is regularly reported by the news media as inflation because it is considered to be inflation by

28、economists.Answer: BQuestion Status: Previous Edition23) A one-time increase in the money supply(a) is synonymous with inflation.(b) cannot cause inflation.(c) leads to an increase in the price level.(d) results in both (a) and (c) of the above.(e) results in both (b) and (c) of the above.Answer: EQ

29、uestion Status: Previous Edition24) If inflation is defined as a condition of a continually, rapidly rising price level, then(a) monetarists contend that inflation is a monetary phenomenon.(b) Keynesians are willing to accept that inflation is a monetary phenomenon.(c) Keynesians are unwilling to ac

30、cept that inflation is a monetary phenomenon.(d) both (a) and (b) of the above.Answer: DQuestion Status: Previous Edition25) If inflation is defined as a condition of a continually, rapidly rising price level, then(a) Keynesians contend that inflation is not a monetary phenomenon.(b) monetarists are

31、 unwilling to accept that inflation is a monetary phenomenon.(c) both (a) and (b) of the above.(d) neither (a) nor (b) of the above.Answer: DQuestion Status: Previous Edition26) If inflation is defined as a condition of a continually, rapidly rising price level, then(a) monetarists are unwilling to accept that inflation is a monetary phenomenon.(b) Keynesians are willing to accept that inflation is a monetary phenomenon.(c) Keynesians are unwilling to accept that inflation is a monetary phenomenon.(d) both (a) and (b) of the above.Answer: BQuestion Status: Previous Edition27) When inflation i