国际金融 阿普亚尔德 习题 作业 练习题Assignment2

1、Assignment 2CHAPTER 4THE MONETARY AND PORTFOLIO BALANCE APPROACHES TO EXTERNAL BALANCEPart 1. Multiple-Choice Questions (only one answer is right1. Suppose that, for a country, its money supply (Ms is at the moment equal to itsdemand for money (Md . Now suppose that the countrys central bank pumps n

2、ew money into the economy. The result of this central bank action, otherthings equal, is that there will be _ under flexible exchange rates and a consequent _ of the countrys currency.a. an incipient balance-of-payments surplus for the country; appreciation b. an incipient balance-of-payments surplu

3、s for the country; depreciation c. an incipient balance-of-payments deficit for the country; appreciation d. an incipient balance-of-payments deficit for the country; depreciation2. In the monetary approach to the balance of payments and the exchange rate, if there is an excess demand for money, the

4、 result is a balance-of-payments _ in a fixed exchang e rate situation and _ of the countrys currency in a flexible exchange rate situation.a. surplus; an appreciation b. surplus; a depreciationc. deficit; an appreciation d. deficit; a depreciation3. If id is the domestic interest rate, if is the fo

5、reign interest rate, xa is the expected rate of appreciation of the foreign currency (or the expected rate of depreciation of the home currency, and financial capital is mobile across countries (and assuming no risk premium, then equilibrium in international financial asset markets is indicated by t

6、he e xpressiona. xa = (id /if . b. xa = id + if . c. i f = id + xa. d. i d = if + xa4. If M s is the money supply, BR = reserves of commercial banks (depository institutions, C = currency held by the nonbank public, and a = the money multiplier, thena. M s = aBR + C b. M s = a(BR + Cc. BR = Ms C d.

7、aC = Ms - BR5. In the asset market or portfolio balance approach, other things equal, a depreciation of the home currency would be caused by _ in inflationary expectations in the home c ountry and by _ in real income in the home country.a. an increase; an increase b. an increase; a decrease c. a dec

8、rease; an increase d. a decrease; a decrease6. In the portfolio balance approach, which one of the following, other things equal, will cause an increase in the demand for domestic bonds by home country citizens?a. a decrease in the home country interest rateb. a increase in the home country price le

9、velc. an increase in the home country real income leveld. a decrease in the expected rate of appreciation of the foreign currency (or a decrease in the expected rate of depreciation of the home currency7. In the monetary approach to the balance of payments and the exchange rate,a. an increase in the

10、 demand for money (with a fixed supply would cause a balance-of- payments deficit under fixed exchange rates.b. an increase in the supply of money (with a fixed demand would cause a balance- of-payments surplus under fixed exchange rates.c. a decrease in the demand for money (with a fixed supply wou

11、ld cause a balance-of-payments deficit under fixed exchange rates.d. an increase in the supply of money (with a fixed demand would cause the domestic currency to appreciate under flexible exchange rates.8. Which one of the following, other things equal, would NOT cause an increase in the a mount of

12、money demanded in country A?a. an increase in As national incomeb. an increase in the price level in country Ac. a fall in interest rates in country Ad. an increase in the rate of expected inflation in A9. In the monetary approach to the balance of payments, under flexible exchange rates, an increas

13、e in the proportion of income that people in country A wish to hold as money would, other things equal, lead to an _ in country As balance of payments and therefore to _ of As currency in the foreign exchangemarkets.a. incipient surplus; a depreciationb. incipient surplus; an appreciationc. incipien

14、t deficit; a depreciationd. incipient deficit; an appreciation10. In considering the demand for money in the monetary approach to the balance of payments, it can be said that the money demand would increase if home real income _ and if the home interest rate _.a. decreases; also decreases b. decreas

15、es; increases c. increases; decreases d. increases; also increases11. In the Dornbusch “overshooting” model, asset markets adjust _ rapidly to disturbances than do goods markets, and therefore the exchange rate and the price level _ proportionately to each other in the short run.a. more; move b. mor

16、e; do not movec. less; move d. less; do not move12. In the portfolio balance model, other things equal, the issuance of new bonds by a home corporation will _ the domestic interest rate and, especially if home and foreign bonds are very good substitutes for each other, will lead to _ of the h ome cu

17、rrency.a. decrease; a depreciation b. decrease; an appreciationc. increase; a depreciation d. increase; an appreciation13. If e is the current spot rate (units of home currency per unit of foreigncurrency, efwd is the current three-months forward rate, E(e is the expected spot rate in three months,

18、and xa is the expected rate of depreciation of the home currency in three months, then, in an efficient foreign exchange market,a. E(e = efwd . b. e = efwd . c. xa = efwd . d. E(e = e.14. In the portfolio balance model, other things equal, an increase in home country wealth because of a current acco

19、unt surplusa. will reduce home country demand for money.b. will reduce home country demand for foreign bonds.c. will have an indeterminate effect on the domestic interest rate (without more information.d. will not affect the domestic demand for either foreign or domestic bonds.15. In the monetary ap

20、proach to the exchange rate, a decrease in income in country Iwill, other things equal, lead to an _ money in country I and therefore to_ of country Is currency against other currencies.a. excess supply of; a depreciationb. excess supply of; an appreciationc. excess demand for; a depreciationd. exce

21、ss demand for; an appreciation16. In the monetary approach to the exchange rate, which one of the following will cause a depreciation of As currency relative to Bs currency?a. an increase in the amount of money demanded at each income level in country Bb. an increase in the money supply in country B

22、c. a fall in real income in country Bd. a decrease in the money supply in country A17. Under a system of flexible exchange rates, the portfolio balance approachsuggests that an increase in real income in a home country will lead to_ of that countrys currency; under flexible rates, the monetary appro

23、ach suggests that an increase in real income in a home country_ of that countrys currency.a. a depreciation; will lead to an appreciationb. a depreciation; also will lead to a depreciationc. an appreciation; also will lead to an appreciationd. an appreciation; will lead to a depreciationPart 2 Defin

24、itionOvershootingPart 3 Simple QuestionsExplain the implication for a countrys BOP in the monetary approach of a change in expectat ions by the countrys citizens such that more inflation is expected in the future.CHAPTER 5PRICE ADJUSTMENTS AND BALANCE-OF-PAYMENTS DISEQUILIBRIUMPart 1. Multiple-Choic

25、e Questions (only one answer is right1. In the “gold standard” framework of the period 1880-1914, suppose that thepar value exchange rate is $2.00/£1. If the market exchange rate rises to $2.12/£1 because of a rise in U.S. demand for British goods, and if it costs $0.05 to ship gold betwee

26、n the two countries, there would be _. Then, if the “rules of the game” were being followed, the money supply in the United States would _ after this movement of gold.a. an inflow of gold to the U.S. Treasury from the Bank of England;decreaseb. an inflow of gold to the U.S. Treasury from the Bank of

27、 England;increasec. an outflow of gold from the U.S. Treasury to the Bank of England;decreased. an outflow of gold from the U.S. Treasury to the Bank of England;increase2. In which of the following cases can we conclude, without any further information, that a depreciation of a countrys currency wil

28、l worsen the countrys trade balance (or current account balance.a. demand curve for exports is horizontal; supply curve of imports is horizontalb. demand curve for exports is vertical; demand curve for imports is verticalc. demand curve for exports is horizontal; demand curve for imports is horizont

29、ald. supply curve of exports is horizontal; supply curve of imports is horizontal3. Given the following table showing various $/£ exchange rates and the respective quantities of pounds demanded by U.S. buyers:$2.50/£1 £1,000$2.00/£1 £1,500$1.50/£1 £1,800The demand

30、for pounds between $2.00/£1 and $1.50/£1 isa. elastic. b. unit-elastic. c. inelastic. d. elastic, unit-elastic, or inelastic cannot be determined without more information.4. Using the information in the table in Question #3 above, the arc elasticity of demand for pounds between the $2.50/&

31、#163;1 exchange rate and the $2.00/£1 exchange rate is (ignoring the negative sign _.5. The shape of the curve that shows the effect of currency depreciation upon a countrys current account balance over time, with the curve itself being known as the _, reflects the fact that short-run demand el

32、asticities are sufficiently _ than long-run elasticities to generate this particular shape. (Ignore the negative sign on the elasticities.a. J curve; lower b. J curve; higherc. supply curve of foreign exchange; lowerd. supply curve of foreign exchange; higher6. Other things equal, which of the follo

33、wing occurs if a country A appreciates its currency relative to country Bs currency?a. As export goods become cheaper to Bs citizens.b. As export goods become more expensive to As citizens.c. Bs export goods become cheaper to As citizens.d. Bs export goods become cheaper to Bs citizens.7. The simple

34、 Marshall-Lerner condition would suggest that one of thefollowing cases would produce a worsening of the trade balance if thecountrys currency depreciated. Which one? (The negative sign onelasticities is being ignored; also, assume that trade is initiallybalanced.8. If depreciation of a home currenc

35、y occurs, foreign exporters to the home country could offset some of the impact of the depreciation by _ the price/cost ratio on goods sent to the home country; such a change in the price/cost ratio would mean that there was _ “pass-through” of the exchange ra te change to foreign export prices.a. d

36、ecreasing; complete b. decreasing; less-than-completec. increasing; complete d. increasing; less-than-complete9. Suppose that a 5% depreciation of the U.S. dollar raises the dollar price of a U.S. import good by 5%. This situation would be characterized as a situation of _ “pass- through” (or “excha

37、nge-rate pass-through”, and U.S. consumers of the imported good would spend a larger dollar amount on the imported good than they did before the depreciation of the dollar if their demand for the good is _.a. complete; inelastic b. complete; elastic c. incomplete or partial; inelastic d . incomplete

38、 or partial; elastic10. If country A depreciates its currency against country Bs currency, then, other things equal,a. there should be “expenditure switching” towards As goods by residents ofboth countries.b. there should be “expenditure switching” towards As goods only by Asresidents.c. there shoul

39、d be “expenditure switching” towards Bs goods by residents ofboth countries.d. Bs goods become cheaper to country As residents.11. If, under the gold standard, the par value of the Swiss franc in terms of the dollar is $0.80, and if it costs $0.01 to move one francs worth of gold between the countri

40、es, then the “gold export point” from the United States is at _, and the “gold import point” into the United States is at _.a. $0.80 = 1 Swiss franc; $0.80 = 1 Swiss francb. $0.79 = 1 Swiss franc; $0.81 = 1 Swiss francc. $0.81 = 1 Swiss franc; $0.79 = 1 Swiss francd. $0.82 = 1 Swiss franc; $0.78 = 1

41、 Swiss franc12. Which of the following situations would represent a “small-country” case in the analysis of the elasticities approach to devaluation?a. demand for exports curve has normal downward slope, supply curve of imports is horizontalb. supply curve of imports has normal upward slope, demand

42、curve for exports is horizontalc. supply curve of imports is horizontal, demand curve for exports is vertical d. demand curve for exports is horizontal, supply curve of imports is horizontal13. If a home country depreciates or devalues its currency by 10 percent, and if there is “complete pass-throu

43、gh” as well as horizontal supply curves of exports and imports, then the price of the countrys exports in terms of foreign currency will _ and the p rice of the countrys imports in terms of home currency will _.a. not change; rise by 10 percent b. not change; not change c. fall by 10 percent; rise b

44、y 10 percentd. fall by 10 percent; not change14. Which one of the following was NOT supposed to occur in the “gold standard” international monetary system?a. Countries were to specify their currency values in terms of gold. b. Countries were to prevent gold movements from influencing theirmoney supp

45、lies.c. Free movement of gold was to occur among countries.d. Countries were to have wage and price flexibility.15. When considering the change in price of a countrys imports when foreign currencies depreciate by 10 percent relative to the home country, the “elasticity of exchange rate pass-through”

46、 would be equal toa. 1.0 if there were no “pass-through.”b. 1.0 if there were complete “pass-through.”c. zero if there were complete “pass-through.”d. 10 percent if there were complete “pass-through.”16. Which of the following occurs if a country A depreciates its currency relative to coun try Bs cu

47、rrency?a. As export goods become cheaper to As residents.b. As export goods become cheaper to Bs residents.c. Bs export goods become cheaper to As residents.d. Bs export goods become more expensive to Bs residents.Part 2 Definition1. Market Stability2. Marshall-lerner ConditionPart 3 Simple Question

48、s1. D efine the “J curve” and give a very brief explanation of why it has the shape that it does.2. Explaining the Backward-Sloping supply curve of foreign exchange.CHAPTER 6NATIONAL INCOME AND THE CURRENT ACCOUNTPart 1. Multiple-Choice Questions (only one answer is right1. If expansionary aggregate

49、 demand-oriented macroeconomic policy is to be used to move the economy towards simultaneous external and internal balance, in which one of the following situations would the policy indeed move the economy towards the attainment of both goals?a. deficit in the current account; unacceptably high unem

50、ployment b. deficit in the current account; unacceptably rapid inflationc. surplus in the current account; unacceptably high unemployment d. surplus in the current account; unacceptably high inflation2. Other things equal, in a Keynesian income model, the autonomous spending multiplier will _ if the

51、re is a decrease in the marginal propensity to consume, and the autonomous spending multiplier _ if there is a decrease in the marginal propensity to import (MPM.a. decrease; also will decrease b. decrease; will increase c. increase; will decrease d. increase; also will increase3. If the consumption

52、 function in a Keynesian model is C = 60 + 0.7Y, then the associated saving function is _.4. If the “multiplier” in a Keynesian open economy is 2.0, this is consistent with which one of the following combinations of the marginal propensity to consume (MPC and the marginal propensity to import (MPM?

53、(Assume that there is no government sector.5. In an open-economy Keynesian income model of the sort used in Chapter 6, at the e quilibrium level of income,a. S + X + T = Y + M + G c. S + M + T = I + X + G b. S + I + (T - G = M - X d. S + (G - T - I = (X - M 6. If national income is greater than spen

54、ding by domestic residents, then the country will have, in its balance of trade (or balance on current account a. a deficit. b. a surplus. c. neither a deficit nor a surplus. d. either a deficit or a surplus cannot be determined without more information. 7. In a Keynesian open-economy income model,

55、an increase in autonomous investment in a country is likely to lead to what impact (if any on national income in a trading partner country? a. an increase b. a decrease c. no change d. an increase, a decrease, or no change cannot be determined without more information 8. The income elasticity of dem

56、and for imports (YEM is defined as a. b. c. d. the change in imports divided by the change in income. total imports divided by total income. the change in income divided by the change in imports. the percentage change in imports divided by the percentage change in income. 9. If a countrys ratio of i

57、mports to national income rises as the country grows over time, this implies, other things equal, that the countrys marginal propensity to import is _ the countrys average propensity to import and, consequently, that the countrys income elasticity of demand for imports (YEM is _. a. greater than; less than 1.0 c. less than; less than 1.0 b. greater than; greater than 1.0 d. less than; greater than 1.0 10. Suppose that, at the equilibrium level of income in a country, the country has a current account (X- M deficit of 60. The countrys marginal propensity to consum