第八章-练习题

第八章

1. The assumptions of the traditional approaches to exchange rate and balance of

payments determination reflect the fact that:

A. they were developed during the time of the gold standard and the early Bretton

Woods systems.

B. economists had not yet recognized the importance of monetary factors at the

time they were developed.

C. there were sizable capital flows between industrialized countries at the time

they were developed.

D. the Keynesian school of thought had not permeated international theory at the

time they were developed.

Answer: A

2. The size of trade flows relative to capital flows is:

A. considerably larger.

B. roughly equal due to trade balances effects.

C. exactly equal due to double entry accounting.

D. quite minuscule.

Answer: D

3. The traditional approaches to exchange rate and balance of payments

determination assume that capital flows occur:

A. at the time of transactions.

B. only as a means of financing current account transactions.

C. largely between countries of equal size and wealth.

D. in relatively unpredictable waves determined by the animal spirits of investors.

Answer: B

4. The elasticity of the export supply in turn determines the elasticity of the:

A. demand for foreign exchange.

B. supply of foreign exchange.

C. demand for domestic currency.

D. supply of domestic currency.

Answer: A

5. The more elastic is the export supply curve, the:

A. less elastic is the demand for domestic currency.

B. more elastic is the supply of domestic currency.

C. less elastic is the supply of foreign exchange.

D. more elastic is the demand for foreign exchange.

Answer: D

6. The import demand curve determines the _____in the same way that the export

supply curve determines the ______.

A. supply of domestic currency; demand for domestic currency.

B. demand for domestic currency; supply of domestic currency.

C. supply of foreign exchange; demand for foreign exchange.

D. demand for foreign exchange; supply of foreign exchange.

Answer: C

7. The more elastic is the import demand curve, the:

A. more elastic is the foreign exchange demand curve.

B. less elastic is the foreign exchange demand curve.

C. more elastic is the foreign exchange supply curve.

D. less elastic is the foreign exchange supply curve.

Answer: C

8. The elasticities approach emphasizes the effects of changes in _______ in

determining the of balance of payments and the exchange rate.

A. the quantities of goods.

B. the relative supply of money

C. the prices of goods

D. real income

Answer: C

9. According to the elasticities approach, the elasticities of the import demand and

export supply curves determine how much the quantity of imports demanded and the quantity of exports supplied will change in response to:

A. a shift in consumer tastes.

B. a change in the exchange rate.