国际经济学第九版英文课后答案 第19单元
国际经济学第九版英文课后答案第20单元
国际经济学第九版英⽂课后答案第20单元CHAPTER 20FLEXIBLE VERSUS FIXED EXCHANGE RATES, THE EUROPEAN MONETARY SYSTEM, AND MACROECONOMIC POLICY COORDINATION OUTLINE20.1 Introduction20.2 The Case for Flexible Exchange Rates20.2a Market Efficiency20.2b Policy Advantages20.3 The Case for Fixed Exchange Rates20.3a Less Uncertainty20.3b Stabilizing Speculation20.3c Price DisciplineCase Study 20-1: Macroeconomic Performance Under Fixed and Flexible Rates Regimes20.4 Optimum Currency Areas and the European Monetary System20.4a Optimum Currency Areas20.4b European Monetary SystemCase Study 20-2: The 1992-3 Currency Crisis in the European Monetary System20.4c Transition to Monetary UnionCase Study 20-3: Maastricht Convergence Indicators20.4d Creation of the EuroCase Study 20-4: Benefits and Costs of the Euro20.4e European Central Bank and Common Monetary Policy20.5 Exchange Rate Bands, Adjustable Pegs, Crawling Pegs, and Managed Floating20.5a Exchange Rate Bands20.5b Adjustable Peg Systems20.5c Crawling Pegs20.5d Managed FloatingCase Study 20-5: Exchange Rate Arrangements of IMF Members20.6International Macroeconomic Policy CoordinationAppendix: Exchange Rate ArrangementsKey TermsFreely floating exchange rate system European Monetary Union Optimum currency area or block EuroEuropean Monetary System (EMS) European Central Bank (ECB)European Currency Unit (ECU) Adjustable peg systemEuropean Monetary Cooperation Fund (EMCF) Crawling peg systemExchange Rate Mechanism (ERM) European Monetary Institute (EMI) Leaning against the wind Dirty floatingManaged floating exchange rate system Maastricht TreatyInternational macro policy coordination Growth and Stability Pact (GSP) Lecture Guide:1. This chapter (not a core chapter) brings together for the most part materialscattered throughout previous chapters on the question of fixed versus flexibleexchange rates. But it also examines the European Monetary System andinternational macroeconomic cooperation. It is an important chapter butbecause of the time constraint, I would omit it in a one-semester undergraduatecourse in international economics, except for section 20.4 on the European Union and the short section on international macroeconomic policy coordination.2. If I were to cover this chapter, I would cover sections 1 to 3 in the first lecture,section 4 in the second lecture, and sections 5 and 6 in the third lecture andassigning the end of chapter problems.Answers to Problems:1. a. The U.S. will export the commodity because at R=2, P=$7 in the U.S. and P=$8in the U.K.b. The U.S. has a comparative disadvantage in this commodity at the equilibriumexchange rate.2. Under a fixed exchange rate system and perfectly elastic international capitalflows, the attempt on the part of the nation to reduce its money supply (tightmonetary policy) tends to increase interest rates in the nation and attract capitalinflows. This frustrates the attempt on the part of the nation's monetary authorities to reduce the nation's money supply. On the other hand, the attempt of the nation's monetary authorities to increase the money supply of the nation will be frustrated by the tendency of the nation's interest rate to fall, resulting in a capital outflowthat would leave the nation's money supply unchanged (see section 17.4c).3. See Figure 1.Figure 1 shows that for a shift in the supply of pounds from S to S' and S*, theexchange rate fluctuate more when the demand curve for pounds is more inelastic (D*) then when it is more elastic (D).4. See Figure 2.Curve A shows the fluctuation in the exchange rate over the business cyclewithout speculation; curve B shows the fluctuation in the exchange over thebusiness cycle with stabilizing speculation, while curve C shows the fluctuation in the exchange rate over the business cycle with destabilizing speculation.5. See Figure 3 on the previous page.6. An optimum currency area involves permanently fixed exchange rates as well ascommon monetary and fiscal policies among its members. Thus, an optimumcurrency area resemble a single economic entity and monetary union. There areno such implications for countries which are connected only by fixed exchangerates.7. (a) With a single central bank and currency the member nations of the EuropeanUnion can no longer print money and thus each member no longer has thewherewithal to conduct monetary policy. The original central bank of eachmember nation now assumes functions similar to that of the federal reserve banks in the Federal Reserve System in the United States. That is, they affect thecommunity-wide monetary policy only through their participation in central bank deliberations and decisions.(b) With a single currency, of course, there are no such things and exchange ratesamong the member nations' currencies, just as there are no exchange rates for the dollar among the states of the United States. Or better, the exchange rate ispermanently fixed at 1:1.8. The benefits that the EU would get from establishing a single currency are:eliminating the costs involved in exchanging currencies, eliminating the risk ofexchange fluctuations and currency crises, inducing nations to adopt moreappropriate economic policies and being able, as a community, to withstand better external shocks. The costs results from the inability of nations to change theirexchange rate and to tailor monetary and fiscal policies to their specific nationalneeds.9. See Figure 4.10. See the dashed curve in Figure 5.11. It is true that flexible exchange rates tend to insulate the economy frominternational disturbances. For example, the tendency of a nation to followinflationary policies will result in a depreciation of its currency. This means thatthe trade partner's currency will appreciate, making its imports cheaper and thuspreventing the importation of inflation from abroad.In an integrated world capital market, however, inflationary policies by one nation will lower its interest rates in the nation and will lead to capital outflows. Unless the trade partner is able to continuously sterilize these capital inflows, inflationary pressures will spread to it also. These inflationary pressures can be avoided byinternational policy coordination. Thus, international policy coordination is useful also under a flexible exchange rate system because in a world of unrestrictedinternational capital flows flexible exchange rate do not insulate nations completely from their partner's policies.12. Game theory is a method for examining the effect of a given policy or course ofaction on a nation or other economic unit for each possible response by anothernation or other economic unit. Game theory can thus be used to show that acooperative equilibrium can be better for (i.e., can increase the welfare of) eachnation or economic unit than if each tries to maximize its welfare independently.13. In a noncooperative equilibrium, each nation is likely to follow a loose fiscalpolicy but a tight monetary policy in order to keep its interest rates up and thereby attract foreign capital and keep the international value of its currency high, so asto keep import prices low. However, when all nations do this their efforts will be self-defeating and interest rates will be higher than with a cooperativeequilibrium. High interest rates will reduce long-term growth for all nations. Witha cooperative equilibrium, on the other hand, nations will use restrictive fiscal andeasy monetary policies. This will keep interest rates low and thus stimulate long-run growth.14. (a) There have been four episodes of significant international macroeconomic policycoordination among the leading industrial nations during the past three decades.The first occurred in 1978 when Germany was induced to stimulate its economyand play as "locomotive" and stimulate growth in other leading industrialcountries also. The effort ended when Germany, fearing inflation, stoopedstimulating its economy. The second was the Plaza Agreement in September of1985 when the United States, Japan, Germany, France, and the United Kingdommet at the Plaza Hotel in New York to engineer a "soft landing" for theovervalued dollar. This effort was regarded as successful but the markets werealready lowering the value of the dollar. The third case is represented by theLouvre Accord in February 1987, when the leading industrial nations agreed onimplicit target zones for the exchange rates among the leading currencies. Thisagreement, however, became inoperative soon after it was reached. The fourthcase is evidenced by the coordinated quick monetary response on the part of theUnited States, Germany, and Japan to October 1987 worldwide equity-marketcrash.(b) International macroeconomic policy coordination to date has been episodic andlimited in scope and it is unlikely that it will be very different in the future. App. On Janaury 1, 1999, 11 of the 15 members of the European Union adopted the euro as their common currency. Britain, Sweden, and Denmark decided not tojoin from the start, but retained the option to join later. Greece was not admittedbecause of its inability to meet most of the Maastricht criteria. The likelyhood,however, is that all four will join the euro by July 2002, when the euro is tocompletely replace the currencies of the participating nations. In the meantime, a new exchange rate mechanism, the ERM II, was installed to keep the currenciesof these four countries from fluctuating to widely, inanticipation of their joining the euro.Multiple-choice Questions:1. An alleged advantage of flexible over fixed exchange rates is:*a. market efficiencyb. stabilizing speculationc. price disciplined. all of the above2. Flexible exchange rates:a. enhance the effectiveness of fiscal policyb. reduce the effectiveness of fiscal policy*c. enhance the effectiveness of monetary policyd. reduce the effectiveness of monetary policy3. Under a flexible as compared to a fixed exchange rate system:*a. a nation can more easily achieve its desired inflation-unemployment tradeoffb. it is more difficult for a nation to achieve its desired inflation-unemployment tradeoffc. it is more difficult for a nation to achieve internal balanced. it is more difficult for a nation to achieve external balance4. Everything else being the same, the volume of trade is likely to be:a. larger under a flexible than under a fixed exchange rate system*b. larger under a fixed than under a flexible exchange rate systemc. equal under a flexible and fixed exchange rate systemd. any of the above5. Most economists believe that under "normal conditions" speculation:*a. is stabilizingb. is destabilizingc. is neither stabilizing nor destabilizingd. seldom occurs6. Price discipline is:*a. greater under a fixed than under a flexible exchange rate systemb. greater under a flexible than under a fixed exchange rate systemc. about the same under a fixed as under a flexible exchange rate systemd. is unrelated to the type of exchange rate system7. Which of the following statements is correct with respect to flexible exchange rates?a. they insulate the domestic economy from external shocks much more than fixed exchange ratesb. they are particularly attractive to nations subject to large external shocksc. they provide less stability to an open economy subject to large internal shocks*d. all of the above8. The formation of an optimum currency area is more likely to be beneficial:a. the smaller is the mobility of resource among the various nations of the optimum currency areab. the smaller are the structural similarities of member nations*c. the more willing are member nations to closely coordinate their fiscal, monetary, and other policiesd. all of the above9. The European Monetary System is or resembles a:*a. fixed exchange rate systemb. a managed exchange rate systemc. a crawling peg systemd. a freely flexible exchange rate system10. The European Monetary Union:a. has a common currencyb. has a single central bankc. conducts a common monetary policy*d. all of the above11. If the band of allowed fluctuation under a fixed exchange rate system is made very wide, the system will resemble:*a. a flexible exchange rate systemb. the gold standardc. an adjustable pegd. a crawling peg12. A fixed exchange rate system without a band of allowed fluctuation would require the nation's monetary authorities to intervene in the foreign exchange market:a. neverb. seldom*c. constantlyd. we cannot say13. The policy of changing par values by small preannounced amounts at frequent intervals until the equilibrium exchange rate is reached is called:*a. crawling pegb. adjustable pegc. managed floatd. dirty float14. The policy of intervention in the foreign exchange market to smooth out short-run fluctuations in exchange rates is called:a. crawling pegb. adjustable peg*c. leaning against the windd. managed float15. International macroeconomic policy coordination has become more useful and essential in recent decades because:a. the interdependence among countries has increasedb. the volume of trade has grown more rapidly than GNPc. of the large increase in international capital flows*d. all of the above。
Unit19-译文及课后练习
十九单元个令人震惊的过失【人们经常将欧洲的高失业率仅仅归咎于诸多苛刻的规章制度。
】那是错误的。
1、芬兰的财政部长最近对欧洲的一千六百万失业人口做了个大胆的承诺。
他的国家在欧盟的轮回主席职位，开始于7月1日，将几乎是唯一的：这将会被记录为没有新工作创造方案。
2、也许什么都不需要。
那肯定是7月3日-4日在科隆的最高会议上进行一项最新的使失业的人重新就业的计划的那些欧盟领导人的愿望，它包括自发的工作创造目标及在企业、协会、政府和欧洲中央银行之间的“宏观经济对话”。
或许这可以神奇地削弱排队等候救济的长队，但不要指望它。
3、或许在通货再膨胀的触动下将帮助那些失业者再就业变得容易些。
欧洲中央银行可以降低利率，欧盟政府可以给它们的经济以财政上的支持，这都可以刺激就业。
但是欧洲中央银行却说在传递途径中没有更多的利率可以降了。
同时坚持紧缩型财政政策与欧盟的“增长和稳定条约”相符合，这把政府的预算赤字限制在了GDP的3%以内。
中央银行的银行专家们断言，欧洲的高失业率与宏观经济政策没有关系：这仅是一个“结构性”问题。
Unit 19A shocking errorEurope’s high unemployment is often blamed on structural rigidities alone. That is a mistake1、FINLAND’S finance minister recently made a bold promise to Europe’s 16m unemployed. His country’s presidency of the European Union, which starts on July 1st, will be almost unique: it will be marked by no new job-creation schemes.2、Perhaps none will be needed. That must be the hope of the EU leaders who launched their latest plan to get the jobless back to work at a summit in Cologne on June 3rd-4th. It involves voluntary job-creation targets and “macroeconomic dialogue” between companies, unions, governments and the European Central Bank. Maybe this will miraculously dent the dole queues. But don’t count on it.3、Or perhaps a touch of reflation might help to ease the unemployed back into jobs. The ECB could trim interest rates and EU governments could give their economies a fiscal boost: both would stimulate employment. But the ECB says no more interest-rate cuts are in the pipeline. And it is insisting on tight fiscal policies to conform with the EU’s “growth and stability pact”, which limits governments’ budget deficits to 3% of GDP. Europe’s high unemployment, the central bankers declare, is nothing to do with macroeconomic policy: it is solely a “structural” problem.4、这是废话。
国际经济学第九版英文课后答案
CHAPTER 1*(Core Chapter)INTRODUCTIONOUTLINE1.1 Importance of International EconomicsCase Study 1-1: The Dell and Other PCs Sold in the United States Are All ButAmericanCase Study 1-2: What Is an "American" Car?1.2 International Trade and The Nation's Standard of LivingCase Study 1-3: Rising Importance of International Trade to the United States 1.3 The Major U.S. Trade Partners: The Gravity Model1.4 The Subject Matter of International Economics1.5 Purpose of International Economic Theories and Policies1.6 Current International Economic Challenges1.7 The Globalization Challenge1.8 Organization and Methodology of the BookAppendix: A1.1 Basic International Trade DataA1.2 Sources of Additional International Data and InformationKey TermsInterdependence Adjustment in the balance of payments Gravity model MicroeconomicsInternational trade theory MacroeconomicsInternational trade policy Open economy macroeconomicsNew protectionism International financeForeign exchange markets GlobalizationBalance of payments Anti-globalization movementLecture Guide1. As the first chapter of the book, the general aim here is simply to define the fieldof study of international economics and its importance in today's interdependent world.The material in this chapter can be covered in two classes. I would utilize oneclass to cover Sections 1 to 4 and the second class to cover Sections 5 to 8. Iwould spend most of the second class on Section 6 on the major currentinternational economic challenges facing the United States and the world todayand to show how international economics can suggest ways to solve them. Thisshould greatly enhance students' motivation.Answer to Problems1. a) International economic problems reported in our daily newspapers are likely toinclude:•trade controversies between the United States, Europe, Japan, and China;•great volatility of exchange rates;•Increasing international competition from China and fear of job losses in the United States and other advanced countries.•structural unemployment and slow growth in Europe, and stagnation in Japan;•financial crises in emerging market economies;•restructuring problems of transition economies;•deep poverty in many developing nations in the world.b) Can result in trade restrictions or even a trade war, which reduce the volumeand the gains from trade;•discourage foreign trade and investments, and thus reduce the benefits from trade;•Can result in trade restrictions or even a trade war, which reduce the volume and the gains from trade;•reduces European and Japanese imports and the volume and the benefits from trade;•financial crises in emerging market economies could spread to the United States;•can lead to political instability, which will adversely affect the United States;•can lead to political instability in these countries - which also adversely affect the United States.c) Can result in your paying higher prices for imported products;•lead to great fluctuations in the price of imported products and cost of foreign travel;•Can lead higher prices for imported products and increases the chances that you will have to change jobs;•can lead you to support demands for trade protection in the United States;•can reduce the value of your investments (such as a stocks) in the United States;•can lead to your paying higher taxes for the United States to respond to these threats;•can result in your paying higher taxes to help these nations.2. a) Five industrial nations not mentioned are: Italy, France, Canada, Austria, andIreland.b) See Table 1A.c) Smaller nations, such as Ireland and Austria, are more interdependent than thelarger ones. Note that interdependence was measured by the percentage of thevalue of imports and exports (line 98c and 90c, respectively in IFS) to GDP (line99b).Table 1AEconomic Interdependence asMeasured by Imports and Exports*Source: International Financial Statistics(Washington, D.C., IMF, March 2006).3. a) Five developing nations not mentioned in the text are: Brazil, Pakistan,Colombia, Nepal, and Tunisia.b) See Table 1B.c) In general, the smaller the nation, the greater is its economic interdependence.Note that interdependence was measured by the percentage of the value ofimports and exports (line 98c and 90c, respectively in IFS) to GDP (line 99b).Table 1BEconomic Interdependence asMeasured by Imports and Exports*Source: International Financial Statistics(Washington, D.C., IMF, March 2006).4. Trade between the United States and Brazil is much larger than trade between theUnited States and Argentina. Since Brazil is larger and closer than Argentina, this trade does follow the predictions of the gravity model.5. a) Mankiw’s Economics (4th., 2007) includes the following microeconomicstopics:•The market forces of demand and supply;•elasticity and its application;•the theory of consumer choice;•consumers, producers, and the efficiency of markets;•the costs of production;•firms in competitive markets;•monopoly;•oligopoly;•monopolistic competition;•markets for the factors of production;•the demand for resources;b) Just as the microeconomics parts of your principles text deal with individualconsumers and firms, and with the price of individual commodities and factors of production, so do Parts One and Two of this text deal with production andconsumption of individual nations with nations with and without trade, and withthe relative price of individual commodities and factors of production.c) Mankiw’s Economi cs (4th., 2007) includes the following microeconomics topics:measuring a nation’s income and the cost of living;•production and growth;•savings investment and the financial system;•unemployment and its natural rate;•the monetary system, growth and inflation;•money growth and inflation;•open-economy macroeconomics: basic concepts;• a macroeconomic theory of the open economy;•aggregate demand and aggregate supply;•the influence of monetary and fiscal policy on aggregate demand;•the short-run trade off between inflation and unemployment•five debates over macroeconomic policy.d) Just as the macroeconomics parts of your principles text deal with the aggregatelevel of savings, consumption, investment, and national income, the general price level, and monetary and fiscal policies, so do Parts Three and Four of this textdeal with the aggregate amount of imports, exports, the total international flow of resources, and the policies to affect these broad aggregates.6. a) Consumer demand theory predicts than when the price of a commodity rises(cet. par.), the quantity demanded of the commodity declines.When the price of imports rises to domestic consumers, the quantity demanded of exports can be expected to decline (if everything else remains constant).7. a) A government can reduce a budget deficit by reducing governmentexpenditures and/or increasing taxes.b) A nation can reduce or eliminate a balance of payments deficit by taxingimports and/or subsidizing exports, by borrowing more abroad or lending less toother nations, as well as by reducing the level of its national income.8. a) Nations usually impose restrictions on the free international flow of goods,services, and factors. Differences in language, customs, and laws also hamperthese international flows. In addition, international flows may involve receipts and payments in different currencies, which may change in value in relation to oneanother through time. This is to be contrasted with the interregional flow ofgoods, services, and factors, which face no such restrictions as tariffs and areconducted in terms of the same currency, usually in the same language, and under basically the same set of customs and laws.b) Both international and interregional economic relations involve the overcomingof space or distance. Indeed, they both arise from the problems created bydistance. This distinguishes them from the rest of economics, which abstractsfrom space and treats the economy as a single point in space, in which production, exchange, and consumption take place.9. We can deduce that nations benefit from voluntarily engaging in internationaltrade because if they did not gain or if they lost they could avoid those losses bysimply refusing to trade. Disagreement usually arises regarding the relativedistribution of the gains from specialization in production and trade, but this does not mean that each nation does not gain from trade.10. International trade results in lower prices for consumers but harms domesticproducers of products, which compete with imports. Often those domesticproducers that stand to lose a great deal from imports band together to pressurethe government to restrict imports. Since consumers are many and unorganizedand each individually stands to lose only very little from the import restrictions,governments often give in to the demands of producers and impose some importrestrictions. These topics are discussed in detail in Chapter 9.11. A nation can subsidize exports of the commodity to other nations until it drivesthe competing nation's industry out of business, after which it can raise its priceand benefit from its newly acquired monopoly power.Some economists and politicians in the United States have accused Japan of doing just that (i.e., of engaging in strategic trade and industrial policy at the expense of U.S. industries), but this is a very complex and controversial aspect of tradepolicy and will be examined in detail in Chapter 9.12. a) When the value of the U.S. dollar falls in relation to the currencies of othernations, imports become more expensive for Americans and so they wouldpurchase a smaller quantity of imports.b) When the value of the U.S. dollar falls in relation to the currencies of othernations, U.S. exports become chapter for foreigners and so they would purchase a greater quantity of U.S. exports.Multiple-Choice Questions1. Which of the following products are not produced at all in the United States?*a. Coffee, tea, cocoab. steel, copper, aluminumc. petroleum, coal, natural gasd. typewriters, computers, airplanes2. International trade is most important to the standard of living of:a. the United States*b. Switzerlandc. Germanyd. England3. Over time, the economic interdependence of nations has:*a. grownb. diminishedc. remained unchangedd. cannot say4. A rough measure of the degree of economic interdependence of a nation is given by:a. the size of the nations' populationb. the percentage of its population to its GDP*c. the percentage of a nation's imports and exports to its GDPd. all of the above5. Economic interdependence is greater for:*a. small nationsb. large nationsc. developed nationsd. developing nations6. The gravity model of international trade predicts that trade between two nations is largera. the larger the two nationsb. the closer the nationsc. the more open are the two nations*d. all of the above7. International economics deals with:a. the flow of goods, services, and payments among nationsb. policies directed at regulating the flow of goods, services, and paymentsc. the effects of policies on the welfare of the nation*d. all of the above8. International trade theory refers to:*a. the microeconomic aspects of international tradeb. the macroeconomic aspects of international tradec. open economy macroeconomics or international financed. all of the above9. Which of the following is not the subject matter of international finance?a. foreign exchange marketsb. the balance of payments*c. the basis and the gains from traded. policies to adjust balance of payments disequilibria10. Economic theory:a. seeks to explain economic eventsb. seeks to predict economic eventsc. abstracts from the many detail that surrounds an economic event*d. all of the above11. Which of the following is not an assumption generally made in the study of international economics?a. two nationsb. two commodities*c. perfect international mobility of factorsd. two factors of production12. In the study of international economics:a. international trade policies are examined before the bases for tradeb. adjustment policies are discussed before the balance of paymentsc. the case of many nations is discussed before the two-nations case*d. none of the above13. International trade is similar to interregional trade in that both must overcome: *a. distance and spaceb. trade restrictionsc. differences in currenciesd. differences in monetary systems14. The opening or expansion of international trade usually affects all members of society:a. positivelyb. negatively*c. most positively but some negativelyd. most negatively but some positively15. An increase in the dollar price of a foreign currency usually:a. benefit U.S. importers*b. benefits U.S. exportersc. benefit both U.S. importers and U.S. exportersd. harms both U.S. importers and U.S. exporters16. Which of the following statements with regard to international economics is true?a. It is a relatively new field*b. it is a relatively old fieldc. most of its contributors were not economistsd. none of the above。
国际经济学第九版课后答案
国际经济学第九版课后答案
是每一位学习国际经济学的学生都十分关心的话题。
然而，教
材的出版方并没有提供官方答案，而且不同的教授和学校可能会
有不同的解释和理解。
因此，学生们需要不断学习和思考，才能
更好地理解这门学科。
在学习国际经济学的过程中，很多学生可能会遇到困难和挑战。
在解决这些问题的时候，查看课后答案是一种常见的方法。
提供
了一些参考答案，可供学生参考，但并不意味着其完全正确。
因此，学生还需要自己思考和研究，才能真正理解和掌握这门学科。
在学习国际经济学的过程中，掌握理论知识非常重要。
国际经
济学涉及到贸易、货币、投资和全球化等众多领域，需要学习者
具备广泛的知识背景和深入的理解。
此外，国际经济学的发展也
十分迅速，学生需要跟随最新的研究成果和政策变化，才能更好
地适应未来的挑战和机遇。
在学习国际经济学的过程中，实践经验也很重要。
学生需要利
用机会参与实践项目和研究课题，了解国际经济领域的最新发展
和趋势。
此外，国际经济学也需要学习者具备团队合作、跨文化
交流和创新思维等能力，这些能力的培养需要与他人合作和共同
探讨，实践是促使这些能力快速发展的必要手段。
总之，是学生学习国际经济学的一个参考工具，但并不是学习
的全部。
学生需要不断思考和研究，勇于提出问题和质疑，并探
索未来的机遇和挑战。
只有通过不断学习、思考和实践，才能真
正掌握国际经济学这门学科，为未来的职业发展打下坚实的基础。
HullOFOD9eSolutionsCh19第九版期权、期货及其他衍生品课后答案
ln( S0 K ) (01 0252 2)05 03712 025 05 The delta of the option is N (d1 ) or 0.64. d1
Problem 19.4. What does it mean to assert that the theta of an option position is −0.1 when time is measured in yt neither a stock price nor its implied volatility will change, what type of option position is appropriate?
A theta of 01 means that if t units of time pass with no change in either the stock price or its volatility, the value of the option declines by 01t . A trader who feels that neither the stock price nor its implied volatility will change should write an option with as high a negative theta as possible. Relatively short-life at-the-money options have the most negative thetas. Problem 19.5. What is meant by the gamma of an option position? What are the risks in the situation where the gamma of a position is large and negative and the delta is zero? The gamma of an option position is the rate of change of the delta of the position with respect to the asset price. For example, a gamma of 0.1 would indicate that when the asset price increases by a certain small amount delta increases by 0.1 of this amount. When the gamma of an option writer’s position is large and negative and the delta is zero, the option writer will lose significant amounts of money if there is a large movement (either an increase or a decrease) in the asset price. Problem 19.6. “The procedure for creating an option position synthetically is the reverse of the procedure for hedging the option position.” Explain this statement. To hedge an option position it is necessary to create the opposite option position synthetically. For example, to hedge a long position in a put it is necessary to create a short position in a put synthetically. It follows that the procedure for creating an option position synthetically is the reverse of the procedure for hedging the option position. Problem 19.7. Why did portfolio insurance not work well on October 19, 1987? Portfolio insurance involves creating a put option synthetically. It assumes that as soon as a portfolio’s value declines by a small amount the portfolio manager’s position is rebalanced by either (a) selling part of the portfolio, or (b) selling index futures. On October 19, 1987, the market declined so quickly that the sort of rebalancing anticipated in portfolio insurance schemes could not be accomplished. Problem 19.8. The Black-Scholes-Merton price of an out-of-the-money call option with an exercise price of $40 is $4. A trader who has written the option plans to use a stop-loss strategy. The trader’s plan is to buy at $40.10 and to sell at $39.90. Estimate the expected number of times the stock will be bought or sold. The strategy costs the trader 010 each time the stock is bought or sold. The total expected cost of the strategy, in present value terms, must be $4. This means that the expected number of times the stock will be bought or sold is approximately 40. The expected number of times it will be bought is approximately 20 and the expected number of times it will be sold is also approximately 20. The buy and sell transactions can take place at any time during the life of the option. The above numbers are therefore only approximately correct because of the effects of discounting. Also the estimate is of the number of times the stock is bought or sold in the risk-neutral world, not the real world.
国际经济学课后答案
1.What factors explain why the world’s trading nations have become increasingly interdependent,from an economic and political view ,during the post- Wold-War-2?经过第二次世界大战，世界经济体系陷入瘫痪状况，因此，战后各国的依存度也大大提高较之之前，分别从经济和政治两个角度体现。
政治方面，因为冷战的结束，各国关注焦点逐渐从政治转向经济，更加加紧了经济联系发展；经济角度体现在三个方面，分别是贸易，货物，服务，原材料，能量等方面的流通交换；财政方面，表现在如外债，外国资金投入，和外汇比率等方面；以及商业的跨国化生产，多边合作，全球分工生产等方面。
2.identify the major fallacies of international trade关于经济全球化的谬论有三个，1.贸易0和，反对者们认为全球市场份额是固定的，一方收益，一方必支出，实际不然，贸易是正合的；2.进口不好，出口不好，这也是错误的，如果一味的像他国出口产品而不进口产品，逐渐的国家财富会发生转移，他国将没有钱再继续购买商品；关税和出口配额拯救就业，错误的，虽然短期看关税和出口配额可以帮助挽回一定的国内被进口品竞争产业的就业，但是长期讲不利于一国的出口以及相应影响的进口品加工产业。
1.how did smith’s view on international trade differ from those of the mercantilists重商主义学说观点是静态的，而亚当的学说是动态的，这就是最大的不同，重商主义认为世界经济的市场大小是固定的，一国的贸易收益来自于其贸易伙伴的损失，并不是所有国家都能从贸易中获益，然而事实并非如此，亚当认为世界经济大小并不固定，国际贸易允许各国间进行专业化生产可以提高劳动生产率，而生产率的提高，则可以使各国均从中获利。
Unit19Modernagriculture
Unit 19 Modern agriculture●语篇领悟阅读本单元课文，完成下列各题：§1.1细枝末节(Passage 1)1.The biggest problem of Chinese farmers is _____.A.the shortage of arable landck of labor forceck of technologyck of money【答案】 A2.Scientists have started to develop new technology to increase agricultural production without harming the environment since _____.A.the 19th centuryB.modern timesC.the early 1990sD.the 1980s【答案】 C3.New techniques are those which can _____.A.increase agricultural productionB.protect the environment from being harmedC.bring in great profitD.not only increase agriculture production but also be friendly to the environment【答案】 D(Passage 2)4.Which of the following is true according to the passage?A.Jia Sixie was the earliest agricultural scientist.B.The knowledge in Qi Min Yao Shu is not useful for farmers today.C.Jia Sixie's book is a practical guide to farming.D.Jia Sixie's book deals with only farming.【答案】 C5.Jia Sixie's book includes advice on the following subjects except _____.A.making wineB.keeping cows,sheep and fishC.growing vegetables and treesD.making food【答案】 D6.The best harvest is reached when _____.A.farmers change the crops in their fieldsB.farmers plough the soil deeperC.farmers sow seed at the correct time of the yearD.much fertilizer is put into the fields【答案】 A§1.2 主旨大意7.Passage 1 mainly tells us about _____.A.farmers in ChinaB.the development of agriculture in ChinaC.advanced technology in ChinaD.genetically modified plants in China【答案】 B8.Passage 2 is mainly about _____.A.farming in ChinaB.gardening in ChinaC.the history of agriculture in ChinaD.Jia Sixie and his Qi Min Yao Shu【答案】 D§1.3 推理判断9.Which of the following is most probable in future agriculture according to Text 1?A.Only high technology is used.B.It will greatly harm the environment.C.It will depend on only traditional methods.D.It will depend on both high technology and traditionalmethods.【答案】 D10.From Text 2 we can see that _____.A.traditional methods are still of great useB.traditional methods should be given upC.traditional methods are of no useD.traditional methods are out of date【答案】 A●知识记忆§2.1 知识网络1.effect n.效果，效力；功效I tried to persuade her,but without effect.我试图劝他，但是无效。
国际经济学第九版英文课后答案第14单元
国际经济学第九版英⽂课后答案第14单元*CHAPTER 14(Core Chapter)FOREIGN EXCHANGE MARKETS AND EXCHANGE RATES OUTLINE14.1 Introduction14.2 Functions of the Foreign Exchange MarketsCase Study 14-1: The U.S. Dollar as the Major Vehicle CurrencyCase Study 14-2: The Birth of a New Currency: The Euro14.3 Foreign Exchange Rates14.3a Equilibrium Foreign Exchange RatesCase Study 14-3: Foreign Exchange Quotations14.3b Arbitrage14.3c The Exchange Rate and the Balance of Payments14.4 Spot and Forward Rates, and Foreign Currency Swaps, Futures and Options14.4a Spot and Forward Rates14.4b Currency Swaps14.4c Foreign Exchange Futures and OptionsCase Study 14-4: Quotations on Foreign Currency Futures and OptionsCase Study 14-5: Size, Currency and Geographical Distribution of the Foreign Exchange Market14.5 Foreign Exchange Risks, Hedging, and Speculation14.5a Foreign Exchange Risks14.5b Hedging14.5c Speculation14.6 Interest Arbitrage and Efficiency of Foreign Exchange Markets14.6a Uncovered Interest Arbitrage14.6b Covered Interest Arbitrage14.6c Covered Interest Arbitrage Parity14.6d Covered Interest Arbitrage Margin14.6e Efficiency of Foreign Exchange MarketsCase Study 14-6: Local Currency and Dollar Stock Returns Around the World 14.7 Eurocurrency Markets 14.7a Description and Size of Eurocurrency Markets14.7b Reasons for the Development and Growth of the Eurocurrency MarketCase Study 14-7: Size and Growth of the Eurocurrency Market14.7c Operation and Effects of Eurocurrency Markets14.7d Eurobond and Euronote MarketsCase Study 14-8: Rising Competition in Global BankingAppendix A14.1 Derivation of Formula for Covered Interest Arbitrage MarginKey TermsForeign exchange market Foreign exchange riskVehicle currency HedgingSeignorage SpeculationEuro Stabilizing speculationExchange rate Destabilizing speculationDepreciation Interest arbitrageAppreciation Uncovered interest arbitrageCross Exchange rate Covered interest arbitrageEffective exchange rate Covered interest arbitrage parity (CIAP)Arbitrage Covered interest arbitrage margin (CIAM)Spot rate Efficiency of foreign exchange marketsForward rate EurocurrencyForward discount Eurocurrency marketForward premium Offshore depositsCurrency swaps EurobondsForeign exchange futures EuronotesForeign exchange optionsLecture Guide:1. This is one of the most important and challenging of the core chapters, and tocover it adequately requires five classes.2. I would cover the first three sections in the first class, and spend one class on eachof the remaining four sections.3. Students find hedging and speculation difficult. I would explain them slowly andvery carefully. I would also assign and go over the problems in class.4. Section 6 on interest arbitrage and the efficiency of foreign exchange markets isalso difficult but very important and so I would cover it slowly and very carefully. Answers to Problems:1. a. With supply curve of pounds S￡, the equilibrium exchange rate is R=$2/￡1 andthe equilibrium quantity is Q=￡40 million (point E in Figure 1 on the next page)under a flexible exchange rate system. On the other hand with supply curve ofpounds S’￡, the equilibrium exchange rate would be R=$3/￡1 and the equilibrium quantity would be Q=￡20 million (point B in Figure 1).b. If the United States wanted to maintain the exchange rate fixed at R=3 in Figure 1with supply curve S￡, the U.S. central bank would gain ￡40 million in reservesper day.2. a. See Figure 2 on the next page.b. With supply curve of pounds S*￡, the equilibrium exchange rate would beR=$1/￡1 and Q=￡70 million under a flexible exchange rate system (see Figure 2).c. If the United States wanted to maintain a fixed exchange rate of R=1 in Figure 2with S*￡, the U.S. central bank would lose ￡50 million of reserves per day.3. Use $2 to purchase ￡1 in New York, use the ￡1 to purchase 410 yens in London,and use the 410 yens to purchase $2.05 in Tokyo, thus earning $0.05 in profit for each pound so transferred.4. a. The forces at work that will make the cross exchange rates consistent in currencyarbitrage in the previous problem are as follows. The selling of pounds for yens in London will reduce the yen price of the pound in London until it is 400 yens to 1.b. The consistent cross rates in Problem 3 are: $2=￡1=400 yens.5. a. The pound is at a three-month forward premium of 1c or 0.5% (or 2%/year) withrespect to the dollar.b. The pound is at a three-month forward discount of 4c or 2% (or 8%/year) withrespect to the dollar.6. a. The euro is at three-month forward premium of 1% (or 4%/year) with respect tothe Swiss franc.b. The dollar is at three-month forward discount of 5% (or 20%/year) with respect tothe yen.7. The importer would have to purchase forward ￡10,000 pounds for delivery inthree months at today's FR=$1.96/￡1.After three months (and regardless of what the spot rate is at that time), theimporter would pay $19,600 and obtain the ￡10,000 he needs to make thepayment.8. The exporter would have to sell forward ￡10,000 pounds for delivery in threemonths at today's FR=$1.96/￡1.After three months, the exporter will deliver the ￡10,000 and receive $19,600. 9. The speculator can speculate in the forward exchange market by purchasingpounds forward for delivery in three months at FR=$2/￡1.If the speculator is correct, he will earn 5c per pound purchased.10. The speculator can speculate in the forward exchange market by selling poundsforward.If the speculator is right, he will earn 5c per pound transferred.If, on the other hand, SR=$2.05/￡1, the speculator will lose 5c per pound.11. The interest arbitrageur will earn 2% per year from the purchase of foreign three-month treasury bills if he covers the foreign exchange risk.12. a. If the foreign currency was instead at a forward premium of 1 percent per year, the interest arbitrageur would earn 5% per year.b. If the foreign currency was at a forward discount of 6 percent per year, it wouldpay for investors to transfer funds from the higher- to the lower-interest centerand lose 4% interest but gain 6% from the foreign exchange transaction, for a net gain of 2% per year.13. a. A t point B, the loss of 1% per year from the forward premium on the foreignexchange transaction on the part of the foreign investor is more than made up bythe 2% per year gain from the higher interest rate in our nation.At point B', the 1% interest loss per year on arbitrage inflow into our nation is less than the 2% per year gain on the forward discount on currency transactio n.b.As arbitrage inflow continues from point B, the positive interest differential infavor of our nation declines and the forward premium on the foreign currencyincreases.From B', the interest differential in favor of the foreign country increases and the forward discount on the foreign currency decreases.14. a. A t CIAP, there is no further possibility from increasing returns over and abovethose that investors can achieve in their own country, but this does not mean thatreturns in the two countries are equalized.As proof of this, we can see that in the example given at the end of Section 14.6d, annualized returns remain at 8 percent in London for British investors and are increased from 6 percent to 6.852 for American investors without considering transaction costs and 6.602 percent if we consider transaction costs of 1/4 of 1percent investing in London. Thus, returns become less unequal as a result ofCIA, but are not equalized!App.1a. a. The U.S. investor will get back ($200,000)(1.015)=$203,000.b. The U.S. investor will get back $203,000+($200,000)(0.00213)=$203,000+$426=$203,426.c. The U.S. investor will get back $205,000+($200,000)(0.0025)=$203,000+$500=$203,500, an overestimation of $74.Multiple-choice Questions:1. Which is not a function of the foreign exchange market?a. to transfer funds from one nation to anotherb. to finance trade*c. to diversify risksd. to provide the facilities for hedging2. An increase in the pound price of the dollar represents:*a. an appreciation of the dollarb. a depreciation of the dollarc. an appreciation of the poundd. a devaluation of the dollar3. A change from $1=€1 to $2=€1 represents*a. depreciation of the dollarb. an appreciation of the dollarc. a depreciation of the poundd. none of the above4. A shortage of pounds under a flexible exchange rate system results in:a. a depreciation of the pound*b. a depreciation of the dollarc. an appreciation of the dollard. no change in the exchange rate5. An effective exchange rate is a:a. spot rateb. forward ratec. flexible exchange rates*d. weighted average of the exchange rates between the domestic currency and the nation's most important trade partners6. The exchange rate is kept within narrow limits in different monetary centers by:a. hedging*b. exchange arbitragec. interest arbitraged. speculation7. If SR=$1/€1 and the three-month FR=$0.99/€1:*a. the euro is at a three-month forward discount of 1%b. the euro is at a forward discount of 1% per yearc. the euro is at a three-month forward premium of 1%d. the dollar is at a three-month forward discount of 1%8. Hedging refers to:a. the acceptance of a foreign exchange risk*b. the covering of a foreign exchange riskc. foreign exchange speculationd. foreign exchange arbitrage9. A U.S. importer scheduled to make a payment of €100,000 in three months can hedge his foreign exchange risk by:a. purchasing $100,000 in the forward market for delivery in three monthsb. selling €100,000 in the spot market for delivery in three months*c. purchasing €100,000 in the forward ma rket for delivery in three monthsd. selling €100,000 in the spot market for delivery in three months10. If the three-month FR=$1/€1 and a speculator anticipates that SR=$1.02/€1 in three months, he can earn a profit by:a. selling euros forward*b. purchasing euros forwardc. selling dollars forwardd. purchasing dollars forward11. Destabilizing speculation refers to the:*a. sale of the foreign currency when the exchange rate falls or is lowb. purchase of the foreign currency when the exchange rate falls or is lowc. sale of the foreign currency when the exchange rate rises or is highd. all of the above12. A capital outflow from New York to Frankfurt under covered interest arbitrage can take place if the interest differential in favor of Frankfurt is:a. smaller than the forward discount on the eurob. equal to the forward discount on the euro*c. larger than the forward discount on the eurod. none of the above.13. According to the theory of covered interest arbitrage, if the interest differential in favor of the foreign country exceeds the forward discount on the foreign currency, there will be a:a. capital inflow under covered interest arbitrage*b. capital outflow under covered interest arbitragec. no capital flow under a covered interest arbitraged. any of the above14. When the interest differential in favor of the foreign country is equal to the forward premium on the foreign currency, we:a. are at covered interest arbitrage parity*b. are not at covered interest arbitrage parityc. may or may not be at covered interest arbitrage parityd. we cannot say without additional information15. The currency of the nation with the lower interest rate is usually at a*a. forward premiumb. forward discountc. covered interest arbitrage parityd. any of the above。
克鲁格曼《国际经济学》中文版·第九版课后习题答案
克鲁格曼《国际经济学》中文版·第九版课后习题答案克鲁格曼《国际经济学》中文版·第九版课后习题答案第一章练习与答案1．为什么说在决定生产和消费时，相对价格比绝对价格更重要？答案提示：当生产处于生产边界线上，资源则得到了充分利用，这时，要想增加某一产品的生产，必须降低另一产品的生产，也就是说，增加某一产品的生产是有机会机本（或社会成本）的。
生产可能性边界上任何一点都表示生产效率和充分就业得以实现，但究竟选择哪一点，则还要看两个商品的相对价格，即它们在市场上的交换比率。
相对价格等于机会成本时，生产点在生产可能性边界上的位置也就确定了。
所以，在决定生产和消费时，相对价格比绝对价格更重要。
2．仿效图1—6和图1—7，试推导出Y商品的国民供给曲线和国民需求曲线。
答案提示：3．在只有两种商品的情况下，当一个商品达到均衡时，另外一个商品是否也同时达到均衡？试解释原因。
答案提示：4．如果生产可能性边界是一条直线，试确定过剩供给（或需求）曲线。
答案提示：5．如果改用Y商品的过剩供给曲线（B国）和过剩需求曲线（A 国）来确定国际均衡价格，那么所得出的结果与图1—13中的结果是否一致？答案提示：国际均衡价格将依旧处于贸易前两国相对价格的中间某点。
6．说明贸易条件变化如何影响国际贸易利益在两国间的分配。
答案提示：一国出口产品价格的相对上升意味着此国可以用较少的出口换得较多的进口产品，有利于此国贸易利益的获得，不过，出口价格上升将不利于出口数量的增加，有损于出口国的贸易利益；与此类似，出口商品价格的下降有利于出口商品数量的增加，但是这意味着此国用较多的出口换得较少的进口产品。
对于进口国来讲，贸易条件变化对国际贸易利益的影响是相反的。
7．如果国际贸易发生在一个大国和一个小国之间，那么贸易后，国际相对价格更接近于哪一个国家在封闭下的相对价格水平？答案提示：贸易后，国际相对价格将更接近于大国在封闭下的相对价格水平。
chapter 19 课后答案英文版
Answers to Textbook Problems1. A rise in the foreign price level leads to a real domestic currency depreciation for a given domesticprice level and nominal exchange rate; thus, as shown in the following diagram, the output market curve shifts from DD to D'D' moving the equilibrium from Points 0 to 1 in Figure 19.1. This shift causes an appreciation of the home currency and a rise in home output. If the expected futureexchange rate falls in proportion to the rise in P*, then the asset market curve shifts down as well, from AA to A'A' with the equilibrium at Point 2.Notice that the economy remains in equilibrium in this case, at the initial output level, if the current exchange rate also falls in proportion to the rise in P*. Why? The goods market is in equilibriumbecause the real exchange rate has not changed; the foreign-exchange market is in equilibrium if the domestic interest rate does not change (there has been no change in the expected rate of future currency depreciation); and with output and the interest rate the same, the money market is still in equilibrium. The economy thus remains in internal and external balance if these conditions heldinitially.Figure 19.12. A transitory increase in the foreign interest rate shifts the asset market curve up and to the right fromAA to A'A', as shown in the Figure 19.2 (there is no change in the expected exchange rate since this isa temporary rise). Under a floating exchange rate there is thus a depreciation of the home currencyand an increase in output. (The effect could differ in the IS-LM model, where the real interest rate influences aggregate demand directly; the DD curve would shift up and to the right as well.) Undera fixed exchange rate, however, the monetary authority must intervene to prevent the depreciation, soit contracts the home money supply by selling foreign exchange and drives the home interest rate to the new higher world level. This causes AA to return to its original position, leaving output unaffected.(Once again, the result would differ in the IS-LM model since foreign interest-rateshocks are not pure money-market disturbances in that model.)Figure 19.23. The effect of a permanent rise in the foreign nominal interest rate depends upon whether that riseis due to an increase in inflationary expectations abroad or a rise in the foreign real interest rate.If the foreign real interest rate rises because of monetary contraction abroad, there is a long-rundepreciation of the domestic currency which reinforces the depreciation that occurs in Problem 2. The100 Krugman/Obstfeld •International Economics: Theory and Policy, Eighth Editionexpansionary effect on home output is thus greater than in the transitory case. If the foreign nominal interest rate rises only because foreign inflationary expectations rise, however, the expectations effect goes the other way and the long-run expected price of foreign currency falls, shifting AA to the left.Domestic output need not rise in this case. Under a fixed exchange ratethere is still no short-run effect on the economy in the DD-AA model, but as P* starts to rise, the home country will have to import foreign inflation. Under a floating rate, the home economy canbe completely insulated from the subsequent foreign inflation.4. A rise in foreign inflation could arise from a permanent increase in foreign monetary growth.This causes the home currency to appreciate against the foreign currency, implying also a realappreciation (since P and P* are fixed in the short run). Domestic output therefore falls as foreign output rises. In the long run, relative PPP implies that the rate of domestic currency appreciation rises to offset the higher foreign inflation. The foreign nominal interest rate rises by the increasein expected inflation (the Fisher effect); the domestic nominal interest rate is the same as its initial long-run value; and by relative PPP, interest parity continues to hold. Notice that in this case, the expected future exchange rate moves over time to reflect the trend inflation differential.5. We can include the aspect of imperfect asset substitutability in the DD-AA model by recognizingthat the AA schedule now must equate M/P= L(R*+ expected depreciation + risk premium, Y).An increase in the risk premium shifts out the AA curve, leading to a currency depreciation and an increase in output. Output will not change under a fixed exchange rate regime: since the exchange rate parity must be preserved, there will be no depreciation and no effect on output.6. In Chapter 18 there is an analysis of internal and external balance for fixed exchange rates. It ispossible to construct a corresponding diagram for floating exchange rates. In Figure 19.3, thevertical axis measures expansion of the money supply, and the horizontal axis measures fiscal ease.The internal balance curve II has a negative slope since monetary restraint must be met by greater fiscal expansion to preserve internal balance. The external balance curve XX has a positive slope since monetary expansion, which depreciates the exchange rate and improves the current account, must be matched by fiscal expansion to preserve external balance. The ―four zones of economicdiscomfort‖ are:Zone 1—overemployment and excessive current account surplusZone 2—overemployment and current account deficitZone 3—underemployment and current account deficitZone 4—underemployment and current account surplusFigure 19.37. The figure described in the answer to Question 6 can be used to answer this question. TheUnited States begins at Point 0 after 1985, where it is in internal balance but there is a large current account deficit. In the short run, monetary expansion (an upward shift in the point) moves theeconomy toward the goal of a greater current account surplus, but also moves the economy out ofChapter 19 Macroeconomic Policy and Coordination Under Floating Exchange Rates 101 internal balance toward overemployment. The expenditure-reducing policy of reducing the budget deficit (represented by a leftward shift in the point), used in tandem with an expenditure-switching monetary expansion, can restore external balance while maintaining internal balance. Moving the economy into a zone of overemployment puts pressure on the price level which ultimately reverses the short-run effect of monetary expansion on the real exchange rate.8. Fiscal expansion in Germany and Japan would have appreciated the currencies of those countries anddiminished the bilateral U.S. trade deficits with them, as desired by American officials. On the other hand, monetary expansion in these countries would have worsened the U.S. current account since the dollar would have appreciated relative to the deutsche mark and the yen. Our two-country models suggest that U.S. output would have fallen as a result. These effects would differ, of course, if the United States altered its policies in response to policy changes in Germany or Japan. For example, if the United States expanded its money supply with the expansion in either Germany or Japan,there would be no bilateral effects. If the United States contracted fiscal policy as Germany orJapan expanded fiscal policy, there would less of an effect on output in each country.9. Sterilized intervention has no effect on the supply of high-powered money. A way to check whetherthe Japanese intervention in 2003–2004 was sterilized is to see if there are unusual movements in Japanese stocks of high-powered money around that time. The International Financial Statistics, published by the IMF, includes measures of reserve money (Line 14) and reserves minus gold(Line 1d). Below, we see the percentage change in both series from late spring 2003 to late spring 2004, the peak of the intervention).There are some months where we see large increases in reserves and also large increases in highpowered money (September and December 2003) which would suggest unsterilized intervention, but in general, the changes in reserves are not always accompanied by changes in high poweredmoney. In particular, high powered money fell during the peak of intervention in January—February 2004, suggesting sterilization (or possibly offsetting factors in the economy for which we are not controlling).10. One can construct a matrix analogous to Figure 19A.1 in the text to show the change in inflation andthe change in exports for each country in response to monetary policy choices by that country and by the other country. Export growth in a country will be greater, but inflation will be higher, if that country undertakes a more expansionary monetary policy, given the other country’s policy choice.There is, however, a beggar-thy-neighbor effect because one country’s greater export gr owth implies lower export growth for the other. Without policy coordination, the two countries will adopt over-expansionary monetary policies to improve their competitive positions, but these policies will offset each other and result simply in higher inflation everywhere. With coordination, the countries will realize that they can both enjoy lower inflation if they agree not to engage in competitive currency depreciation.102 Krugman/Obstfeld •International Economics: Theory and Policy, Eighth EditionFigure 19A.111. The simple model of savings and investment against the real interest rate can be drawn as followsbelow. The increase in world savings can be shown as a rightwards shift in the savings schedule.The result is that the world real interest rate falls and the amount of savings and investment rises.We can think of the ―global savings glut‖ story here. World interest rates went down as large scale savings (public and private), in emerging market countries in particular, increased the supply of world savings. This falling interest rate should lead to an increase in world investment. If this investment is in countries other than the ones who increased savings, then the increased investmentand constant savings (or possibly falling savings due to the falling world real interest rate) incountries like the U.S. will lead to current account deficits in the U.S. and like countries and current account surpluses in the savings countries.12. The table below shows U.S. money market interest rates and inflation rates from 1970 to 1976.You can find these data in the IMF’s Internati onal Financial Statistics, available in most libraries.Assuming that expected inflation equals actual inflation, we can generate the real interest rates.The first oil shock starts at the end of 1973, so 1974 is the first year we would see its effects. The three years following the oil shocks have negative real interest rates as opposed to the positive rates in prior years, consistent with the theory. (Note that if inflation is surprisingly high in the yearsfollowing the oil shocks, and hence expected inflation was lower than the numbers in this table,the real interest rate would be higher and the theory may not be reflected in the data.)Year Nominal interest rate Inflation Real interest rate1970 7.2% 5.9% 1.3%1971 4.7% 4.3% 0.4%1972 4.4% 3.3% 1.1%1973 8.7% 6.2% 2.5%1974 10.5% 11.0% -0.5%1975 5.8% 9.1% -3.1%1976 5.1% 5.7% -0.6%Chapter 19 Macroeconomic Policy and Coordination Under Floating Exchange Rates 103 13. If MD increased in Figure 19.2 in the text, but the exchange rate is fixed, then the central bankwill increase the money supply such that the AA curve does not in fact move. If the increase in the money supply to meet the money demand encourages banks to lend more domestically, this willgenerate higher investment by firms and shift out the DD curve. The central bank will have to meet this increase by increasing the money supply slightly more to shift out the DD curve and keep Econstant.14. If other Central Banks sell dollars for euros, then it is equivalent to a sterilized sale of dollars becauseneither the U.S. nor any other central bank’s asset side of the balance sheet has changed. Thus, the money supply is unchanged everywhere. On the other hand, there is a larger supply of dollar assets relative to euro assets in circulation than before. If this is not viewed as a signal of U.S. or euro area monetary policy and assets are substitutable, there should be no impact on the exchange rate. If the action moves the risk premium on U.S. assets because the outstanding supply becomes too large (and assets are not perfectly substitutable, see Chapter 17), the action could cause a depreciation of the dollar against the euro.。
Unit19答案
Unit19答案Unit 19 An Overview of AuditingⅠ.Multiple choice questions1.D2.D3.A4.BⅡ. Translate the following accounting terms into English1.Independent mental attitude2.Operational audit3.Quantifiable information4.Established Criteria5.Economic entity/doc/5814708498.html,pliance audit7.Audit of Financial Statements8.Recommendation to management9.Replacement cost of fixed assets10.Tax returnⅢ. Translate the following sentences into English1.Auditing is a process by which a competent , independent person accumulates andevaluates about quantifiable information related to a specific economic entity for the purpose of determining and reporting on the degree of correspondence between the quantifiable information and established criteria.2.Evidence is defined as any information used by the auditor to determine whetherthe quantifiable information being audited is stated in accordance with the established criteria.3.An operational audit is a review of any part of an organization operatingprocedures and methods for the purpose of evaluating efficiency and effectiveness.Ⅳ. Answer the following questions1.(1) Quantifiable information and established Criteria.(2) Economic entity.(3)Accumulating and evaluating evidence.(4) Competent, independent person.(5) Reporting.2.An operational audit is a review of any part of an organization operating procedures and methods for the purpose of evaluating efficiency and effectiveness. At the completion of an operational audit , recommendation to management for improving are normally expected. The purpose of a compliance audit is to determine whether the auditee is following procedures or rules set down by some higher authority. An audit of financial statements is conducted to determine whether the overall financial statements—the quantifiable information being verified—are stated in accordance with specified criteria. The conduct of an operational audit and the reported results are less easily defined than either of the other two types of audits. Efficiency and effectiveness of operations are far more difficult to evaluate objectively than compliance or the presentation of financial statements in accordance with generally accepted accounting principles; and establishing criteria for evaluating the quantifiable information in an operational audit is an extremely subjective matter. Ⅴ. Translate the follows into Chinese 财务报表审计是为了确定被审查信息，即财务报表是否符合特定的标准而进行的审计。
克鲁格曼《国际经济学》(国际金融部分)课后习题答案(英文版)第一章
CHAPTER 1INTRODUCTIONChapter OrganizationWhat is International Economics About?The Gains from TradeThe Pattern of TradeProtectionismThe Balance of PaymentsExchange-Rate DeterminationInternational Policy CoordinationThe International Capital MarketInternational Economics: Trade and MoneyCHAPTER OVERVIEWThe intent of this chapter is to provide both an overview of the subject matter of international economics and to provide a guide to the organization of the text. It is relatively easy for an instructor to motivate the study of international trade and finance. The front pages of newspapers, the covers of magazines, and the lead reports of television news broadcasts herald the interdependence of the U.S. economy with the rest of the world. This interdependence may also be recognized by students through their purchases of imports of all sorts of goods, their personal observations of the effects of dislocations due to international competition, and their experience through travel abroad.The study of the theory of international economics generates an understanding of many key events that shape our domestic and international environment. In recent history, these events include the causes and consequences of the large current account deficits of the United States; the dramatic appreciation of the dollar during the first half of the 1980s followed by its rapid depreciation in the second half of the 1980s; the Latin American debt crisis of the 1980s and the Mexico crisis in late 1994; and the increased pressures for industry protection against foreign competition broadly voiced in the late 1980s and more vocally espoused in the first half of the 1990s. Most recently, the financial crisis that began in East Asia in 1997 andspread to many countries around the globe and the Economic and Monetary Union in Europe have highlighted the way in which various national economies are linked and how important it is for us to understand these connections. At the same time, protests at global economic meetings have highlighted opposition to globalization. The text material will enable students to understand the economic context in which such events occur.Chapter 1 of the text presents data demonstrating the growth in trade and increasing importance of international economics. This chapter also highlights and briefly discusses seven themes which arise throughout the book. These themes include: 1) the gains from trade;2) the pattern of trade; 3) protectionism; 4), the balance of payments; 5) exchange rate determination; 6) international policy coordination; and 7) the international capital market. Students will recognize that many of the central policy debates occurring today come under the rubric of one of these themes. Indeed, it is often a fruitful heuristic to use current events to illustrate the force of the key themes and arguments which are presented throughout the text.。
TPO-19 Reading 2解析
正确答案：C解析：用人名和succession做关键词定位至最后一句，提到很多因素都可以影响succession，所以正确答案是C。
Q2正确答案：A解析：substantiate“成为现实，确认”，所以正确答案是A confirm。
Q3正确答案：D解析：trend“趋势”，所以D的tendency正确。
原句提到一个总体的____能看出来，但具体的细节是看不出来的，能与细节形成对照的是总体趋势，所以很容易推出DQ4正确答案：B解析：likewise“同样地”，所以B similarly是正确答案。
第二段曾提到细节不可预测，而这里又说到最后一阶段也不能预测，说明跟前面情况类似。
选B。
Q5正确答案：D解析：legitimately“正当地，合法地”，所以正确答案是D的“官方地”。
Q6正确答案：A解析：修辞目的题，先读修辞点所在句子，原句提到为了强调这种互动的松散性，很多作者更愿意使用association，所以答案是A。
B的beneficial to all members，C的dynamic development和D的specific purpose原文都未提及。
Q7正确答案：A解析：以biome做关键词定位至第二句，由于这句只是给出了biome的概念，没有challenge，所以往下看，下句提到尽管有些动物与植物的关系是紧密的，但还是不能说biome，比如他们之间没有internal cohesion，所以答案是A，动植物之间没有紧密关系。
B和C原文都没提到；D的food原文也未提及，而且D也不是challenge上文提到的概念的，所以不正确。
Q8正确答案：D解析：修辞目的题，修辞点就是一个事实陈述，所以看前一句，前句提到spruce 种群不受moose是否存在的影响，依然是前面例子的延续，所以看中心句，注意这段文字的中心句不是第五段第一句，而是第三句，说spruce-moose biome这一说法是不正确的，所以答案是D。
国际经济学第九版答案.doc
国际经济学第九版答案【篇一：国际经济学第九版英文课后答案第13 单元】> balance of paymentsoutline13.1 introduction13.2 balance of payments accounting principles 13.2a debitsand credits 13.2b double-entry bookkeeping13.3 the international transactions of the united states casestudy 13-1: the major goods exports and imports of the unitedstates13.4 accounting balances and disequilibrium in internationaltransactions13.5 the postwar balance of payments of the united statescase study 13-2: the major trade partners of the united statescase study 13-3: the u.s. trade deficit with japancase study 13-4:the exploding u.s. trade deficit with china13.6 the international investment position of the unitedstatescase study 13-5: the united states as a debtor nationappendix: a13.1 the imf method of reporting internationaltransactionsa13.2 the case of the missing surplusbalance of paymentscapital account credittransactionsautonomous transactions debit transactionsaccommodating transactions capitalinflow officialreserve account capital outflowofficial settlements balancedouble-entry bookkeeping deficit in the balance ofpaymentsunilateral transferssurplus in the balance ofpayments statistical discrepancy international investmentposition current account1. in the first lecture, i would cover sections 1 and 2a. theaverage student usually finds the meaning of capital inflowsand outflows particularly difficult to understand. therefore, iwould pay special care in presenting the material in section 2a.i would also assign problems 1 to 8. 2.in the second lecture, iwould cover section 2b and go over problems 1-8.i wouldpresent sections 3 and 4 in the third lecture, and stress themeaning and measurement of balance of payments deficitsand surpluses.sections 5 and 6 (which are mostly descriptiveand not difficult) could be left for studentsto do on their own so that the chapter could still be covered in three lectures. 1. a.the u.s. debits its current account by $500 (for the merchandise imports) and credits capital by the same amount (for the increase in foreign assets in the u.s.).the u.s. credits capital by $500 (the drawing down of its bank balances in london, a capital inflow) and debits capital by an equal amount (to balance the capital credit that the u.s. importer received when the u.k. exporter accepted to be paid in three months).the u.s. is left with a $500 debit in its current account and a net credit balance of $500 in its capital account.2. a).the u.s. debits unilateral transfers by $100 and credits capital by the same amount.b).the u.s. credits its current account by $100 and debits capital by the same amount.c).the debit of $100 in unilateral transfers and the credit of $100 in current account.3. a).the same as 2a.the net result is the same, but the transaction in part a of this problem refers to tied aid while transactions a and b in problem 2 do not.4. the u.s. debits capital account by $1,000 (for the purchase of the foreign stock by the u.s. resident) and also credits the capital account (for the drawing down of the u.s. resident bank balances abroad) by the same amount.5. the u.s. credits its current account by $100 and debits its capital account by the same amount.6. the u.s. credits its capital account by $400 (for the purchase of the u.s. treasury bills by the foreign resident) and debits its capital account (for the drawing down of the foreign residents bank balances in the united states) for the by the same amount.7. the u.s. debits its current account by $40 for the interest paid, debits its capital account by $400 (for the capital outflow for the repayment of the repayment of the principal to the foreign investors by the u.s. borrower), and then credits its capital account by $440 (the increase in foreign holdings of u.s. assets, a credit).8. a). the u.s. credits its capital account by $800 and debits its official reserves account by the same amount.b). the official settlements balance of the u.s. will improve (i.e., the u.s. deficit will fall or its surplus will rise) by $800.where values are in billions of dollars and a negative balance represents a deficit while apositive balance a surplus in the balance of payments. b. because until 1972, we had a fixed exchange rate system, but from 1973 we had a managed floating exchange rate system. under the latter, the balance of payments only measures the amount of official intervention in foreign exchange markets. 9.see the july issue of the survey of current business for the most recent year.10.see the july issue of the survey of current business for the most recent year.11.see the july issue of the survey of current business for the most recent year.12. see the july and november issues of the survey of current business for the most recent year.13.see the balance of payments statistics yearbook for the most recent year. app. 1. the major difference between the way the united states keeps its balance of payments and the international monetary fund method is in the way they deal with international capital movements. the united states records international capital movements as increases in u.s.-owned assets abroad and foreign-owned assets in the united states, subdivided into government and private. the international monetary fund includes international capital flows into a financial account, which is subdivided into direct investments, portfolio investments assets and liabilities, and other investment assets and liabilities.2. see the table in april and october issue of the imfs world economic outlook for the most recent year.1. which of the following is false?a. a credit transaction leads to a payment from foreignersb.a debit transaction leads to a payment to foreigners *c. a credit transaction is entered with a negative signd. double-entry bookkeeping refers to each transaction entered twice.2. which of the following is a debit?a. the export of goodsb. the export of services*c. unilateral transfers given to foreigners d. capital inflows 3. capital inflows:a. refer to an increase in foreign assets in the nationb. referto a reduction in the nations assets abroad c. lead to apayment from foreigners *d. all of the above4. when a u.s. firm imports goods to be paid in three monthsthe u.s. credits:a. the current accountb. unilateral transfers *c. capitald. official reserves5. the receipt of an interest payment on a loan made by a u.s.commercial bank to a foreign resident is entered in the u.s.balance of payments as a:a. credit in the capital account *b. credit in the currentaccount c. credit in official reserves d. debit in unilateraltransfers6. the payment of a dividend by an american company to aforeign stockholder represents:a. a debit in the u.s. capital accountb. a credit in the u.s.capital accountc. a credit in the u.s. official reserve account *d. a debit in theu.s. current account7. when a u.s. firm imports a good from england a pays for itby drawing on its pound sterling balances in a london bank,the u.s. debits its current account and credits its:a. official reserve accountb. unilateral transfers accountc.services in its current account *d. capital account8. when the u.s. ships food aid to a developing nation, the u.s.debits:*a. unilateral transfers b. services c. capitald. official reserves9. when the resident of a foreign nation (1) sells a u.s. stockand (2) deposits the proceeds in a u.s. bank, the u.s.:a. credits capital for (1) and debits capital for (2)b. creditsthe current account and debits capital c. debits capital andcredits official reserves*d. debits capital for (1) and credits capital for (2)10. when a u.s. resident (1) purchases foreign treasury billsand pays by (2) drawing down his bank balances abroad, theu.s.:【篇二：国际经济学第九版英文课后答案第9 单元】>(core chapter)nontariff trade barriers and the new protectionism outline9.1 introduction9.2 import quotas9.2a effects of an import quota9.2b comparison of an import quota to an import tariff9.3 other nontariff barriers and the new protectionism 9.3a voluntary export restraintsstates9.3b technical, administrative, and other regulations9.3c international cartels9.3d dumping9.3e export subsidies9.4 the political economy of protectionism9.4a fallacious and questionable arguments for protection 9.4b infant-industry and other qualified arguments for protection9.4c who gets protected?welfare effects on the u.s. economy of removing all import restraintsrestraints9.5 strategic trade and industrial policies9.5a strategic trade policy9.5b strategic trade and industrial policies with game theory 9.5c the u.s. response to foreign industrial targeting and strategic trade policy9.6 history of u.s. commercial policy9.6a the trade agreements act of 19349.6b the general agreements on tariffs and trade (gatt)9.6c the 1962 trade agreements act and the kennedy round 9.6d the trade reform act of 1974 and the tokyo round9.6e the 1984 and 1988 trade acts9.7 the uruguay round and outstanding trade problems 9.7a the uruguay round9.7b outstanding trade problemsbenefits from a “likely ”doha scenario appendix: a9.1 centralized cartels a9.2 international price discriminationa9.3 tariffs, subsidies and domestic goalsquota smoot-hawley tariff act of 1930 nontariff trade barrier (ntbs)trade agreements act of 1934new protectionism most-favored-nation principle voluntary export restraints (vers) bilateral trade technical, administrative, and general agreement on tariff and other regulations trade (gatt)international cartel multilateral trade negotiationsdumpinginternational trade organization (ito) persistent dumping peril-point provisionspredatory dumping escape clausesporadic dumping national security clausetrigger-price mechanismtrade expansion act of 1962export subsidies trade adjustment assistance (taa) export- import bank kennedy roundforeign sales corporationstrade reform act of 1974countervailing duties (cvds) tokyo roundscientific tariff trade and tariff act of 1984infant-industry argumentomnibus trade and competitiveness act of 1988strategic trade policy uruguay roundindustrial policy world trade organization (wto)game theoryglobalization anti-globalization movement1. this is an important core chapter examining some of the most recentdevelopments in international trade policy.2. i would cover sections 1 and 2 in lecture 1. i would pay particular attention tofigure 9-1, which examines the partial equilibrium effects of an import quota.3. i would cover section 3 in lecture 2. here i would clearly explain the differencebetween a regular import quota and a voluntary export restraint. i would alsoclearly explain dumping and figure 9-2 (which deals with export subsidies). the five case studies serve to highlight the theory and show the relevance of thetheory in todays world.4. i would cover section 4 in lecture 3. here i would give special attention to the。
曼昆宏观经济经济学第九版英文原版答案完整版
曼昆宏观经济经济学第九版英文原版答案完整版曼昆宏观经济经济学第九版英文原版答案集团标准化办公室：[VV986T-J682P28-JP266L8-68PNN]A n s w e r s t o T e x t b o o k Q u e s t i o n s a n d P r o b l e m sCHAPTER 7Unemployment and the Labor MarketQuestions for Review1. The rates of job separation and job finding determine the naturalrate of unemployment. The rate of job separation is the fraction of people who lose their job each month. The higher the rate of jobseparation, the higher the natural rate of unemployment. The rate of job finding is the fraction of unemployed people who find a job each month. The higher the rate of job finding, the lower the natural rate of unemployment.2. Frictional unemployment is the unemployment caused by the time ittakes to match workers and jobs. Finding an appropriate job takes time because the flow of information about job candidates and job vacancies is not instantaneous. Because different jobs requiredifferent skills and pay different wages, unemployed workers may not accept the first job offer they receive.In contrast, structural unemployment is the unemployment resulting from wage rigidity and job rationing. These workers are unemployed not because they are actively searching for a job that best suits their skills (as in the case of frictional unemployment), but because at the prevailing real wage thequantity of labor supplied exceeds the quantity of labor demanded. If the wage does not adjust to clear the labor market, then these workers must wait for jobs to become available. Structural unemployment thus arises because firms fail to reduce wages despite an excess supply of labor.3. The real wage may remain above the level that equilibrates laborsupply and labor demand because of minimum wage laws, the monopoly power of unions, and efficiency wages.Minimum-wage laws cause wage rigidity when they prevent wages from falling to equilibrium levels. Although most workers are paid a wage above the minimum level, for some workers, especially the unskilled and inexperienced, the minimum wage raises their wage above theequilibrium level. It therefore reduces the quantity of their labor that firms demand, and creates an excess supply of workers, which increases unemployment.The monopoly power of unions causes wage rigidity because the wages of unionized workers are determined not by the equilibrium of supply and demand but by collective bargaining between union leaders and firm management. The wage agreement often raises the wage abovethe equilibrium level and allows the firm to decide how many workers to employ. These high wages cause firms to hire fewer workers than at the market-clearing wage, so structural unemployment increases.Efficiency-wage theories suggest that high wages make workers more productive. The influence of wages on worker efficiency may explain why firms do not cut wages despite an excess supply of labor. Even though a wage reduction decreasesthe firm’s wage bill, it may also lower worker productivity and therefore the firm’s profits.4. Depending on how one looks at the data, most unemployment can appearto be either short term or long term. Most spells of unemployment are short; that is, most of those who became unemployed find jobs quickly.On the other hand, most weeks of unemployment are attributable to the small number of long-term unemployed. By definition, the long-term unemployed do not find jobs quickly, so they appear on unemployment rolls for many weeks or months.5. Europeans work fewer hours than Americans. One explanation is thatthe higher income tax rates in Europe reduce the incentive to work. A second explanation is a larger underground economy in Europe as aresult of more people attempting to evade the high tax rates.A third explanation is the greater importance of unions in Europe and their ability to bargain for reduced work hours. A final explanation isbased on preferences, whereby Europeans value leisure more thanAmericans do, and therefore elect to work fewer hours.Problems and Applications1. a. In the example that follows, we assume that during the school yearyou look for a part-time job, and that, on average, it takes 2 weeks to find one. We also assume that the typical job lasts 1semester, or 12 weeks.b. If it takes 2 weeks to find a job, then the rate of job finding in weeks isf = (1 job/2 weeks) = 0.5 jobs/week.If the job lasts for 12 weeks, then the rate of job separation in weeks iss = (1 job/12 weeks) = 0.083 jobs/week.c. From the text, we know that the formula for the natural rate of unemployment is(U/L) = [s/(s + f )],where U is the number of people unemployed, and L is the number of people in the labor force.Plugging in the values for f and s that were calculated in part (b), we find(U/L) = [0.083/(0.083 + 0.5)] = 0.14.Thus, if on average it takes 2 weeks to find a job that lasts 12 weeks, the natural rate of unemployment for this population ofcollege students seeking part-time employment is 14 percent.2. Call the number of residents of the dorm who are involved I, thenumber who are uninvolved U, and the total number of students T = I + U. In steady state the total number of involved students is constant.For this to happen we need the number of newly uninvolved students,(0.10)I, to be equal to the number of students who just becameinvolved, (0.05)U. Following a few substitutions:(0.05)U = (0.10)I= (0.10)(T – U),soWe find that two-thirds of the students are uninvolved.3. To show that the unemployment rate evolves over time to thesteady-state rate, let’s begin by defining how the number of people unemployed changes over time. The change in the number of unemployed equals the number of people losing jobs (sE) minus the number finding jobs (fU). In equation form, we can express this as:U–U t= ΔU t + 1 = sE t–fU t.t + 1Recall from the text that L = E t + U t, or E t = L –U t, where L is the total labor force (we will assume that L is constant). Substituting for E t in the above equation, we findΔU t + 1 = s(L –U t) –fU t.Dividing by L, we get an expression for the change in the unemployment rate from t to t + 1:ΔU t + 1/L = (U t + 1/L) –(U t/L) = Δ[U/L]t + 1 = s(1 –U t/L) –fU t/L.Rearranging terms on the right side of the equation above, we end up with line 1 below. Now take line 1 below, multiply the right side by (s + f)/(s + f) and rearrange terms to end up with line 2 below:Δ[U/L]t + 1= s – (s + f)U t/L= (s + f)[s/(s + f) – U/L].tThe first point to note about this equation is that in steady state, when the unemployment rate equals its natural rate, the left-handside of this expression equals zero. This tells us that, as we found in the text, the natural rate of unemployment (U/L)n equals s/(s + f).We can now rewrite the above expression, substituting (U/L)n for s/(s + f), to get an equation that is easier to interpret: Δ[U/L]t + 1 = (s + f)[(U/L)n–U t/L].This expression shows the following:If U t/L > (U/L)n (that is, the unemployment rate is above its natural rate), then Δ[U/L]t + 1 is negative: the unemployment rate falls.If U t/L < (U/L)n (that is, the unemployment rate is below its natural rate), then Δ[U/L]t + 1 is positive: the unemployment raterises.This process continues until the unemployment rate U/L reaches the steady-state rate (U/L)n.4. Consider the formula for the natural rate of unemployment,If the new law lowers the chance of separation s, but has no effect on the rate of job finding f, then the natural rate of unemployment falls.For several reasons, however, the new law might tend to reduce f.First, raising the cost of firing might make firms more careful about hiring workers, since firms have a harder time firing workers who turn out to be a poor match. Second, if job searchers think that the new legislation will lead them to spend a longer period of time on a particular job, then they might weigh morecarefully whether or not to take that job. If the reduction in f is large enough, then the new policy may even increase the natural rate of unemployment.5. a. The demand for labor is determined by the amount of labor that aprofit-maximizing firm wants to hire at a given real wage. The profit-maximizing condition is that the firm hire labor until the marginal product of labor equals the real wage,The marginal product of labor is found by differentiating the production function with respect to labor (see Chapter 3 for more discussion),In order to solve for labor demand, we set the MPL equal to the real wage and solve for L:Notice that this expression has the intuitively desirable feature that increases in the real wage reduce the demand for labor.b. We assume that the 27,000 units of capital and the 1,000 units oflabor are supplied inelastically (i.e., they will work at anyprice). In this case we know that all 1,000 units of labor and 27,000 units of capital will be used in equilibrium, so we can substitute these values into the above labor demand function and.solve for WPIn equilibrium, employment will be 1,000, and multiplying this by10 we find that the workers earn 10,000 units of output. The totaloutput is given by the production function:Y=5Y13Y23Y=5(27,00013)(1,00023)Y=15,000.Notice that workers get two-thirds of output, which is consistent with what we know about the Cobb–Douglas production function from Chapter 3.c. The real wage is now equal to 11 (10% above the equilibrium levelof 10).Firms will use their labor demand function to decide how manyworkers to hire at the given real wage of 11 and capital stock of 27,000:So 751 workers will be hired for a total compensation of 8,261units of output. To find the new level of output, plug the new value for labor and the value for capital into the production function and you will find Y = 12,393.d. The policy redistributes output from the 249 workers who becomeinvoluntarily unemployed to the 751 workers who get paid more than before. The lucky workers benefit less than the losers lose as the total compensation to the working class falls from 10,000 to 8,261 units of output.e. This problem does focus on the analysis of two effects of theminimum-wage laws: they raise the wage for some workers whiledownward-sloping labor demand reduces the total numberof jobs.Note, however, that if labor demand is less elastic than in this example, then the loss of employment may be smaller, and thechange in worker income might be positive.6. a. The labor demand curve is given by the marginal product of laborschedule faced by firms. If a country experiences a reduction inproductivity, then the labor demand curve shifts to the left as in Figure 7-1. If labor becomes less productive, then at any givenreal wage, firms demand less labor.b. If the labor market is always in equilibrium, then, assuming afixed labor supply, an adverse productivity shock causes adecrease in the real wage but has no effect on employment orunemployment, as in Figure 7-2.c. If unions constrain real wages to remain unaltered, then asillustrated in Figure 7-3, employmentfalls to L1 and unemployment equals L –L1.This example shows that the effect of a productivity shock on aneconomy depends on the role of unions and the response of collective bargaining to such a change.7. a. If workers are free to move between sectors, then the wage in each sector will be equal. If thewages were not equal then workers would have an incentive to move to the sector with the higherwage and this would cause the higher wage to fall, and the lower wage to rise until they wereequal.b. Since there are 100 workers in total, L S = 100 – L M. We cansubstitute this expression into the labor demand for services equation, and call the wage w since it is the same in bothsectors:L S = 100 – LM= 100 – 4wLM= 4w.Now set this equal to the labor demand for manufacturing equation and solve for w:4w = 200 – 6ww = $20.Substitute the wage into the two labor demand equations to find L M is 80 and L S is 20.c. If the wage in manufacturing is equal to $25 then L M is equal to 50.d. There are now 50 workers employed in the service sector and the wage w S is equal to $12.50.e. The wage in manufacturing will remain at $25 and employment will remain at 50. If thereservation wage for the service sector is $15 then employment in the service sector will be 40. Therefore, 10 people are unemployed and the unemployment rate is 10 percent.8. Real wages have risen over time in both the United Statesand Europe,increasing the reward for working (the substitution effect) but also making people richer, so they want to “buy” more leisure (theincome effect). If the income effect dominates, then people want to work less as real wages go up. This could explain the Europeanexperience, in which hours worked per employed person have fallen over time. If the income and substitution effects approximatelycancel, then this could explain the U.S. experience, in which hours worked per person have stayed about constant. Economists do not have good theories for why tastes might differ, so they disagree onwhether it is reasonable to think that Europeans have a larger income effect than do Americans.9. The vacant office space problem is similar to the unemploymentproblem; we can apply the same concepts we used in analyzingunemployed labor to analyze why vacant office space exists. There isa rate of office separation: firms that occupy offices leave, eitherto move to different offices or because they go out of business.There is a rate of office finding: firms that need office space (either to start up or expand) find empty offices. It takes time to match firms with available space. Different types of firms require spaces with different attributes depending on what theirspecific needs are. Also, because demand for different goods fluctuates, there are “sectoral shifts”—changes in the composition of demand among industries and regions that affect the profitability and office needs of different firms.。
国际经济学第九版答案
国际经济学第九版答案【篇一：国际经济学第九版英文课后答案第13单元】> balance of paymentsoutline13.1 introduction13.2 balance of payments accounting principles 13.2a debits and credits 13.2b double-entry bookkeeping13.3 the international transactions of the united states case study 13-1: the major goods exports and imports of the united states13.4 accounting balances and disequilibrium in international transactions13.5 the postwar balance of payments of the united states case study 13-2: the major trade partners of the united states case study 13-3: the u.s. trade deficit with japancase study 13-4:the exploding u.s. trade deficit with china13.6 the international investment position of the united statescase study 13-5: the united states as a debtor nationappendix: a13.1 the imf method of reporting international transactionsa13.2 the case of the missing surplusbalance of paymentscapital account credit transactionsautonomous transactions debit transactionsaccommodating transactions capital inflow official reserve account capital outflowofficial settlements balance double-entry bookkeeping deficit in the balance of paymentsunilateral transferssurplus in the balance of payments statistical discrepancy international investment position current account1. in the first lecture, i would cover sections 1 and 2a. the average student usually finds the meaning of capital inflows and outflows particularly difficult to understand. therefore, i would pay special care in presenting the material in section 2a.i would also assign problems 1 to 8. 2.in the second lecture, i would cover section 2b and go over problems 1-8.i would present sections 3 and 4 in the third lecture, and stress the meaning and measurement of balance of payments deficitsand surpluses.sections 5 and 6 (which are mostly descriptiveand not difficult) could be left for studentsto do on their own so that the chapter could still be covered in three lectures.1. a.the u.s. debits its current account by $500 (for the merchandise imports) and credits capital by the same amount (for the increase in foreign assets in the u.s.).the u.s. credits capital by $500 (the drawing down of its bank balances in london, a capital inflow) and debits capital by an equal amount (to balance the capital credit that the u.s. importer received when the u.k. exporter accepted to be paid in three months).the u.s. is left with a $500 debit in its current account and a net credit balance of $500 in its capital account.2. a).the u.s. debits unilateral transfers by $100 and credits capital by the same amount.b).the u.s. credits its current account by $100 and debits capital by the same amount.c).the debit of $100 in unilateral transfers and the credit of $100 in current account.3. a).the same as 2a.the net result is the same, but the transaction in part a of this problem refers to tied aid while transactions a and b in problem 2 do not.4. the u.s. debits capital account by $1,000 (for the purchase of the foreign stock by the u.s. resident) and also credits the capital account (for the drawing down of the u.s. resident bank balances abroad) by the same amount.5. the u.s. credits its current account by $100 and debits its capital account by the same amount.6. the u.s. credits its capital account by $400 (for the purchase of the u.s. treasury bills by the foreign resident) and debits its capital account (for the drawing down of the foreign residents bank balances inthe united states) for the by the same amount.7. the u.s. debits its current account by $40 for the interest paid, debits its capital account by $400 (for the capital outflow for the repayment of the repayment of the principal to the foreign investors by the u.s. borrower), and then credits its capital account by $440 (the increase in foreign holdings of u.s. assets, a credit).8. a). the u.s. credits its capital account by $800 and debits its official reserves account by the same amount.b). the official settlements balance of the u.s. will improve (i.e., the u.s. deficit will fall or its surplus will rise) by $800.where values are in billions of dollars and a negative balance represents a deficit while apositive balance a surplus in the balance of payments. b. because until 1972, we had a fixed exchange rate system, but from 1973 we had a managed floating exchange rate system. under the latter, the balance of payments only measures the amount of official intervention in foreign exchange markets. 9.see the july issue of the survey of current business for the most recent year.10.see the july issue of the survey of current business for the most recent year.11.see the july issue of the survey of current business for the most recent year.12. see the july and november issues of the survey of current business for the most recent year.13.see the balance of payments statistics yearbook for the most recent year. app. 1. the major difference between the way the united states keeps its balance of payments and the international monetary fund method is in the way they deal with international capital movements. the united states records international capital movements as increases in u.s.-owned assets abroad and foreign-owned assets in the united states, subdivided into government and private. the international monetary fund includes international capital flows into a financial account, which is subdivided into direct investments, portfolio investments assets and liabilities, and other investment assets and liabilities.2. see the table in april and october issue of the imfs world economic outlook for the most recent year.1. which of the following is false?a. a credit transaction leads to a payment from foreignersb.a debit transaction leads to a payment to foreigners *c. a credit transaction is entered with a negative signd. double-entry bookkeeping refers to each transaction entered twice.2. which of the following is a debit?a. the export of goodsb. the export of services*c. unilateral transfers given to foreigners d. capital inflows3. capital inflows:a. refer to an increase in foreign assets in the nationb. refer to a reduction in the nations assets abroadc. lead to a payment from foreigners *d. all of the above4. when a u.s. firm imports goods to be paid in three months the u.s. credits:a. the current accountb. unilateral transfers *c. capitald. official reserves5. the receipt of an interest payment on a loan made by a u.s. commercial bank to a foreign resident is entered in the u.s. balance of payments as a:a. credit in the capital account *b. credit in the current accountc. credit in official reservesd. debit in unilateral transfers6. the payment of a dividend by an american company to a foreign stockholder represents:a. a debit in the u.s. capital accountb. a credit in the u.s. capital accountc. a credit in the u.s. official reserve account *d. a debit in the u.s. current account7. when a u.s. firm imports a good from england a pays for it by drawing on its pound sterling balances in a london bank, the u.s. debits its current account and credits its:a. official reserve accountb. unilateral transfers accountc. services in its current account *d. capital account8. when the u.s. ships food aid to a developing nation, the u.s. debits:*a. unilateral transfers b. services c. capitald. official reserves9. when the resident of a foreign nation (1) sells a u.s. stock and (2) deposits the proceeds in a u.s. bank, the u.s.:a. credits capital for (1) and debits capital for (2)b. credits the current account and debits capitalc. debits capital and credits official reserves*d. debits capital for (1) and credits capital for (2)10. when a u.s. resident (1) purchases foreign treasury bills and pays by (2) drawing down his bank balances abroad, the u.s.:【篇二：国际经济学第九版英文课后答案第9单元】>(core chapter)nontariff trade barriers and the new protectionismoutline9.1 introduction9.2 import quotas9.2a effects of an import quota9.2b comparison of an import quota to an import tariff9.3 other nontariff barriers and the new protectionism9.3a voluntary export restraintsstates9.3b technical, administrative, and other regulations9.3c international cartels9.3d dumping9.3e export subsidies9.4 the political economy of protectionism9.4a fallacious and questionable arguments for protection 9.4b infant-industry and other qualified arguments for protection9.4c who gets protected?welfare effects on the u.s. economy of removing all import restraintsrestraints9.5 strategic trade and industrial policies9.5a strategic trade policy9.5b strategic trade and industrial policies with game theory 9.5c the u.s. response to foreign industrial targeting and strategic trade policy9.6 history of u.s. commercial policy9.6a the trade agreements act of 19349.6b the general agreements on tariffs and trade (gatt)9.6c the 1962 trade agreements act and the kennedy round 9.6d the trade reform act of 1974 and the tokyo round9.6e the 1984 and 1988 trade acts9.7 the uruguay round and outstanding trade problems9.7a the uruguay round9.7b outstanding trade problemsbenefits from a “likely” doha scenarioappendix: a9.1 centralized cartelsa9.2 international price discriminationa9.3 tariffs, subsidies and domestic goalsquota smoot-hawley tariff act of 1930 nontariff trade barrier (ntbs)trade agreements act of 1934new protectionism most-favored-nation principlevoluntary export restraints (vers) bilateral tradetechnical, administrative, and general agreement on tariff and other regulations trade (gatt)international cartel multilateral trade negotiationsdumpinginternational trade organization (ito) persistent dumping peril-point provisionspredatory dumping escape clausesporadic dumping national security clausetrigger-price mechanismtrade expansion act of 1962export subsidies trade adjustment assistance (taa) export-import bank kennedy roundforeign sales corporationstrade reform act of 1974countervailing duties (cvds) tokyo roundscientific tariff trade and tariff act of 1984infant-industry argumentomnibus trade and competitiveness act of 1988strategic trade policy uruguay roundindustrial policy world trade organization (wto)game theoryglobalizationanti-globalization movement1. this is an important core chapter examining some of the most recentdevelopments in international trade policy.2. i would cover sections 1 and 2 in lecture 1. i would pay particular attention tofigure 9-1, which examines the partial equilibrium effects of an import quota.3. i would cover section 3 in lecture 2. here i would clearly explain the differencebetween a regular import quota and a voluntary export restraint. i would alsoclearly explain dumping and figure 9-2 (which deals with export subsidies). the five case studies serve to highlight the theory and show the relevance of thetheory in todays world.4. i would cover section 4 in lecture 3. here i would give special attention to thefallacious arguments for protection since they are often heard in commondiscussions of trade matters. i would also clearly explain the importance ofstrategic trade and industrial policy and the political economy of who getsprotected.5. i would cover section 5 in lecture 4, which examines strategic trade andindustrial policies policies with game theory. this is not difficult and thestudents will find it very interesting.6. sections 6 and 7 can be covered in lecture 5. here i would stress the uruguayround and the outstanding international trade problems.1.nations restrict trade either in response to lobbying by the producers of acommodity in which the nation has a comparative disadvantage or to gain astrategic advantage in relation to other nations. the first leads to a welfare loss for he nation as a whole. the second is very difficult to achieve.2.the partial equilibrium effects of the import quota are:px=$1.50; consumption is 45x, of which 15x are produced domestically;by auctioning off import licenses, the revenue effect would be $15.3.the partial equilibrium effects of the import quota are:px=$2.50; consumption is 40x, of which 10x are produced domestically;the revenue effect is $45.4.the partial equilibrium effects of the quota are:px=$2; domestic production and consumption are 50x; the revenue is zero.5.the partial equilibrium effects of the quota are:px=$1; consumption is 70x, production is 30x, and revenue is zero.6.the partial equilibrium effects of a negotiated export quota of 30x are:7.8.px=$4; domestic production is 40x, of which 10x are consumed at home. an export tariff or quota, as an import tariff or quota, affects the price of the commodity and domestic consumption and production. but the effects are the opposite. see figure 1. the equilibrium price of the commodity is px=oc and the equilibrium quantityis qx=ob in figure 1.9.10.11.if the supply curve of the commodity in figure 1 referred to a cartel of exporters acting as a monopolist, px=of and qx=oa (see figure 1). px is higher and qx smaller when exporters behave as a monopolist. a) the monopolist should chargep1=$4 in the domestic market and p2=$3 in figure 9-5 in appendix a9.2.b) this represents the best, or optimal distribution of sales between the twomarkets because any other distribution of sales in the two markets gives lessrevenue.12. see figure 2. to the left of point a, the domestic firm faces higher long-run average costs of production (lacd) than the foreign firm (lacf). to the right of point a the opposite is the case.13. a) if the entries in the top left-hand corner of table 9-5 were changed to +10,+10, then both boeing and airbus would produce the aircraft without anysubsidy, and so no strategic trade and industrial policy would be needed in the u.s. or europe.b) if the entries in the top left-hand corner of table 9-5 were changed to +5, +0, then both boeing and airbus would produce the aircraft without any subsidy, and so no strategic trade and industrial policy would be needed in the u.s. or europe. *note that even though airbus only breaks even, in economics we includea normal return on investment as part of costs. thus, airbus wouldremain in business because it would earn a normal return on investment.c) if the entries in the top left-hand corner of table 9-5 were changed to +5, -10,then both boeing produces and airbus does not produce without any subsidy.with a subsidy of at least $10 million per year, however, airbus would enterthe market and lead to a loss of $100 million for boeing unless the u.s.government would provide a subsidy of at least $5 million per year to boeing.14.the answer to part (a) and (b) are presented in appendixa9.3.app. 1. see figure 3 on page 90.app. 3. by imposing a 100% tax on the production of commodity x and giving it as a subsidy to producers of commodity y.【篇三：国际经济学第九版英文课后答案第18单元】>open-economy macroeconomics: adjustment policiesoutline*18.1 introductioncase study 18-1: government, private sector, and current account balancesin the g-7 countries*18.2 internal and external balance with expenditure-changing andexpenditure-switching policies18.3 equilibrium in the goods market, in the money market, and in thebalance of payments18.4 fiscal and monetary policies for internal and external balancewith fixed exchange rates18.4a fiscal and monetary policies from external balance and unemployment 18.4b fiscal and monetary policies from external deficit and unemployment 18.4c fiscal and monetary policies with elastic capital flows18.4d fiscal and monetary policies with perfect capital mobilitycase study 18-2: relationship between u.s. current account and budget deficits18.5 the is-lm-fe model with flexible exchange rates18.5a is-lm-fe model with flexible exchange rates and imperfect capital mobilitycase study 18-3: effect of u.s. fiscal policy in the united states and abroad 18.5b is-lm-fe model with flexible exchange rates and perfect capital mobilitycase study 18-4: effect of monetary policy in the u.s. and other oecdcountries*18.6 policy mix and price changes18.6a policy mix and internal and external balance18.6b evaluation of the policy mix with price changes18.6c policy mix in the real worldcase study 18-5: u.s. monetary and fiscal policies in the 1980s and early 1990s*18.7 direct controls18.7a trade controls18.7b exchange controlscase study 18-6: direct controls on international transactions around the world18.7c other direct controls and international cooperationappendix: a18.1 derivation of the is curvea18.2 derivation of the lm curvea18.3 derivation of the fe curvea18.4 mathematical summaryinternal balance transaction demand for moneyexternal balance speculative demand for moneyexpenditure-changing policiesbp curveexpenditure-switching policiesphillips curveprinciple of effective market classification exchange controls is curve multiple exchange rateslm curve1. this is one of the most important and challenging of the chapters. sections 1-2 and 6-7 are core sections and should be covered in any international economics course. sections 3-5 introduce the is-lm-bp model and may be skipped ifintermediate macroeconomics is not a requirement for the course. this is up to the instructor, however.2. in the first lecture, i would cover sections 1 and 2 and assign problems 1-3. the most important and difficult part hereis the swan diagram. if students are to know anything about economic policies to correct internal and externalimbalances, this is it.3. sections 3-5 require two classes to be covered adequately if students hadintermediate macroeconomics. otherwise, it would take three classes, or they can be skipped. if sections 3-5 are covered, i would assign problems 4-11 and go over some of these in class to make sure that students fully understand the model and the policies that can be used to correctinternal and external imbalances.4. i would cover section 6 in the next class and assign problems 12-14. the most important aspect of this section is the explicit recognition of price stability as the third important objective of nations and the problems that this creates with the policies at hand to achieve internal and external balance completely. i would also cover case studies 18.1-18-3.5. i would leave section 7 for students to cover by themselves. the section isimportant but mostly descriptive and students to read it on their own and bring questions to class.1. c1 increase devaluec4 increase revaluec7 decrease revaluec10 decrease devalue2. c2 increase nonec5 nonerevaluec8 decrease nonec11 nonedevalue3. c3 increase revaluec6 decrease revaluec9 decrease devaluec12 increase devalue4. a.the nation faces a surplus at ye=1,000 because p isbelow point e.b.at ye=1,000 and with a mpm=0.15, the nation faces a surplus of(200)(0.15)=30.5.the nation of problem 4 can reach full employment with external balance with the expansionary fiscal policy that shiftsis upward until it crosses the bp line at point f and the tight monetary policy that shifts lm upward until it also crosses the bp line at point f.6. the nation requires the expansionary fiscal that shifts the is curve up until it crosses the bp curve at point f and the tight monetary policy that shifts up the lm curve until it crosses the bp curve at point f.see figure 1.7. if the full-employment level of national income is ye=1,000, the nation requires the expansionary fiscal policy that shifts the is curve up until it crosses the bp curve at point b and the tight monetary policy that shifts up the lm curve until it crosses the bp curve at point b.see figure 2.8. a. if the bp curve were flatter than the lm curve, the nation would require theexpansionary fiscal policy that shifts the is curve up until it crosses the pb curve at point f and the easy monetary policy that shifts down the lm curve until it crosses the bp curve at point f.see figure 3.b.9.when the bp curve is flatter than the lm curve, the nation requires an easy rather than a tight monetary policy to achieve internal and external balance simultaneously. with perfectly elastic international capital flows, the bp line would be horizontal and monetary policy would be completely ineffective. the nation could reach internal and external balance with the appropriate expansionary fiscal policy only.。
国际经济学第九版课后答案
FIGURE 4.1
10. See Figure 4.3. In Figure 4.3, Nation 2 is the small
nation, and we magnified the portion of the offer curve of Nation 1 (the large nation) near the origin (where Nation 1’s offer curve coincides with PA = 1/4, Nation 1’s pretrade-relative commodity price with trade). This means that Nation 2 can import a sufficiently small quantity
some import restrictions. These topics are discussed in detail in Chapter 9.
Chapter 2
2. In case A, the United States has a comparative advantage in wheat and the United Kingdom in cloth. In case B, the United States has a comparative advantage in wheat and the United Kingdom in cloth. In case C, the United States has a comparative advantage in wheat and the United Kingdom in cloth. In case D, the United States and the United Kingdom have a comparative advantage in neither commodity.
- 1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
- 2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
- 3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。
CHAPTER 19PRICES AND OUTPUT IN AN OPEN ECONOMY:AGGREGATE DEMAND AND AGGREGATE SUPPLY OUTLINE19.1 Introduction19.2 Aggregate Demand, Aggregate Supply, and Equilibrium in a Closed Economy19.2a Aggregate Demand in a Closed Economy19.2b Aggregate Supply in the Long Run and in the Short Run19.2c Short-Run and Long-Run Equilibrium in a Closed EconomyCase Study 19-1: Deviations of Short-Run Outputs from the Natural Level in the U.S.19.3 Aggregate Demand in an Open Economy Under Fixed and Flexible Exchange Rates19.3a Aggregate Demand in an Open Economy Under Fixed Exchange Rates19.3b Aggregate demand in an Open Economy Under Flexible Exchange Rates19.4 Effect of Economic Shocks and Macroeconomic Policies on Aggregate Demandin Open Economies with Flexible Prices19.4a Real-Sector Shocks and Aggregate Demand19.4b Monetary Shocks and Aggregate Demand19.4c Fiscal and Monetary Policies and Aggregate Demand in Open Economies19.5 Effect of Fiscal and Monetary Policies in Open Economies with Flexible PricesCase Study 19.2: Central Bank Independence and Inflation in Industrial Countries19.6 Macroeconomic Policies to Stimulate Growth and to Adjust to Supply Shocks19.6a Economic Policies for Growth19.6b Economic Policies to Adjust to Supply ShocksCase Study 19.3: Petroleum Shocks and Stagflation in the United StatesCase Study 19.4: Actual and Natural Unemployment Rate, and Inflation in United StatesCase Study 19.5: Actual and Natural Unemployment Rate, and Inflation in United StatesCase Study 19.6: Has the U.S. Economy Become Recession Proof? Key TermsAggregate demand curve (AD)Aggregate supply curve (AS)Long-run aggregate supply curve (LRAS)Natural level of output (YN)Short-run aggregate supply curve (SRAS)Expected pricesStagflationLecture Guide1. This is not a core chapter and I would omit it in a one-semester undergraduate course in international economics.2. If I were to cover this chapter, I would cover two sections in each of three lectures and assign the end-of-chapter problems.Answer to Problems1. See Figure 1.2. See Figure 2.3. See Figure 3.4. See Figure 4.5. An unexpected increase in prices in the face of sticky wages means that real wages temporarily fall. This leads firms to hire more workers and thus increase output in the short run. In the long-run, however, money wages fully adjust to (i.e., increase in the same proportion as) the increasein prices. As a result, real wages return to their previous higher level, firms reduce employment to their original lower level, and the nation's output returns to its lower long-runnatural level, but at the new higher price level.6. Starting from point C in Figure 19-3, an unexpected decrease in aggregate demand from AD' to AD causes prices to fall and firms to temporarily reduce their output, giving the new short-run equilibrium point where the AD' curve intersects the SRAS' curve. In the long run, however, as expected prices fall to match actual prices, the short-run aggregate supply curve shifts down by the amount of the price reduction (i.e., from SRAS' to SRAS) and defines new long- run equilibrium point E at the natural level of output YN, but lower price level of PE.Another way of saying this is that at point to the left of the LRAS curve, actual prices are lower than expected prices. Expected prices then fall and this shifts the SRAS curve downward until expected prices are equal to the lower actual prices, and the economy returns to its long-run natural level of output equilibrium.7. An unexpected decrease in aggregate demand causes prices to fall. If wages are sticky and do not immediately fall in the same proportion as the fall in prices, real wages will temporarily increase. This leads firms to hire fewer workers and thus reduce output in the short run. In the long-run, however, money wages fully adjust to (i.e., fall in the same proportion as) the fall in prices. As a result, real wages return to their previous lower level, firms increase employment to their original higher level, and the nation's output returns to its higher long-run or naturallevel, but at the new higher lower level.8. If the LM' curve intersected the IS' curve at a point below the BP' curve in the left panel of Figure 19-5, the interest rate in the nation would be lower than required for balance of payments equilibrium. The nation would then have a deficit in its balance of payments. Under a fixed exchange rate system, the deficit in the nation's balance of payments would result in an outflow of international reserves and thus a reduction in the nation's money supply, which would shift up the LM' curve sufficiently to intersect the IS' curve on the BP' curve, so that the nationwould be simultaneously in equilibrium in the goods and money markets and in the balance of payments, as at point E".9. See Figure 5.10. Starting from equilibrium in the goods and services sector, in the monetary sector, and in the balance of payments, an autonomous worsening of the nation's trade balance at unchanged domestic prices, causes the IS and BP curves to shift to the left and opens a deficit in the nation's balance of payments under fixed exchange rates. This leads to a leftward shift of the LM curve and a reduction in national income. Thus, the nation's aggregate demand curve shifts to the left.11. With flexible exchange rates, the autonomous worsening of the nation's trade balance at unchanged domestic prices, causes the IS and BP curves to shift to the left (just as in the case of fixed rates). Now, however, the tendency of the nation's balance of payments to go into deficit leads to a depreciation of the nation's currency and a deterioration in the nation's trade balance, so that the BP and IS curves shift to the left, back to their original position along the unchanged LM curve. Thus, the nation returns to the original equilibrium position and point on its original aggregate demand curve.12. Expansionary fiscal policy under fixed exchange rates or easy monetary policy under flexible rates can correct a recession but only the expense of higher prices or inflation. If prices are flexible downward in the nation, however, the recession can be corrected automatically and in a relatively short time by falling domestic prices, which would stimulate the domestic and foreign demand for the nation's goods and services. If domestic prices are sticky or not too flexible downward, however, relying on market force (i.e., falling prices in the nation) to automatically correct the recession may take too long, and this may justify the use of expansionary fiscal or monetary policies.13. The nation would reach the long-run equilibrium point where the AD' curve crosses the unchanged LRAS curve. The SRAS curve would also shift and cross the LRAS curve at the same point. The nation's natural level of output and employment would then be the same as before the supply (petroleum) shock, but prices would be higher.14. The concept of the natural rate of unemployment is useful as long as no structural changes take place in the economy. When structural changes do occur (and globalization may just be such a structural change), then the rate of natural unemployment will change. With globalization the natural rate of unemployment may well be 5 percent or lower in the United States today.Multiple-Choice Questions1. In general, as the economy expends or contracts over the business cycle *a. prices changeb. prices remain unchanged except in a recessionc. prices remain unchanged until the economy reaches full employmentd. all of the above2. The aggregate demand curve (AD) for closed economy is derived from thea. IS curveb. LM curvec. FE curve*d. IS and LM curves3. A reduction in the general price level with a constant money supply is shown by aa. leftward shift in the LM curve*b. movement down along a given aggregate demand curvec. rightward shift in the aggregate supply curved. a rightward shift in the IS curve4. An increase in the money supply with constant prices leads to aa. leftward shift in the LM curveb. movement along a given aggregate demand curve*c. rightward shift in the aggregate demand curved. rightward shift in the IS curve5. An increase in government expenditures leads toa. a rightward shift in the IS curveb. a rightward shift in the AD curvec. an increase in the level of national income*d. all of the above6. A nation's output in the short-run cana. exceed its natural levelb. fall short of its natural levelc. equal to its natural level*d. any of the above7. Which of the following statements is false?a. a nations' natural level of output can increase as a result of growthb. imperfection in product markets can lead to temporary deviations in a nation's output from its long-run natural level*c. sticky wages cannot lead to temporary deviations in a nation's outputfrom its long-run natural leveld. none of the above.8. Output in the short run exceeds the natural level of output if expected prices*a. exceed actual pricesb. are lower than actual pricesc. are equal to actual pricesd. any of the above9. The aggregate demand curve (AD) for an open economy is derived from thea. IS curveb. LM curvec. BP curve*d. all of the above10. The aggregate demand curve for an open economy under fixed exchange rates isa. less elastic than if the economy were closed*b. more elastic than in the economy were closedc. more elastic than in the economy operated with flexible exchange ratesd. all of the above11. An autonomous improvement in the nation's trade balance under fixed exchange rates will cause the nation's aggregate demand curve to*a. shift to the rightb. shift to the leftc. remain unchangedd. any of the above12. An autonomous short-term capital outflow under flexible exchange rates causes the nation's aggregate demand curve to*a. shift to the rightb. shift to the leftc. remain unchangedd. any of the above13. With high short-term international capital flows, fixed exchange rates, and flexible pricesa. monetary policy is effective*b. fiscal policy is effectivec. both fiscal and monetary policies are effectived. neither fiscal policy nor monetary policies are effective14. Which of the following statements is false?a. expansionary fiscal or monetary policy can increase the nation's outputtemporarily above its natural levelb. expansionary fiscal or monetary policy can used to correct a recession but only at the expense of higher prices in the nation*c. a recession cannot be eliminated automatically even if domestic prices are flexible downwardd. when prices are not flexible downward inflation may be less costly that recession15. Which of the following statements is false with regard to the effect of macroeconomic policies?a. they generally cause shifts in the aggregate demand curveb. they can possibly increase long-run growthc. they can help correct supply shocks that increases production costs but only at the expense of even higher inflation*d. they always cause shifts in the long-run aggregate supply curve。