国际金融习题8

I MULTIPLE CHOICE(20points)

Identify the letter of the choice that best completes the statement or answers the question. Each question is worth 2 points. Please put your answer into the following form.

1、When bookkeeping national income, ( )enter GNP

A. the sale of a desk

B. the sale of a chair

C. the sale of a cup

D. the sale of a used textbook

2、Gross Domestic Product ( )

A.Measures the volume of productin within a country’s borders.

B.Pluses net receipts of factor income from the rest of the world equals GNP.

C.Does not correct for the portion of countries’ production carried out using services provided

by foreign-owned capital.

D.Pluses the income domestic residents earn on wealth they hold in other countries minuses the

payments domestic residents make to foreign owners of wealth located at home equals GNP.

3、A country’s private saving can take forms as ( )

A.taxes

B.Investment in domestic capital

C.Purchases of wealth from foreigners

D.Purchases of the domestic government’s newly issued debt

4、The major actors in the foreign exchange market are( )

A commercial banks

B corporations

C nonbank financial institutions

D central banks

5、Aggregate money demand is determined by ( )

A the interest rate

B the price level

C real national income

D the central bank

6、The empirical support for PPP and the law of one price is weak because( )

A.Trade barriers and nontradables

B.Departures from free competition

C.The price level is flexible in the long-run

D.International differences in price level measurement

7、The long-run determination of nominal exchange rates can be analyzed by combining the following ( )

A.Balassa-Samuelson hypothesis

B.The theory of the long-run real exchange rate

C.The Marshall-Lerner Condition

D.The theory of how domestic monetary factors determine long-run price levels

8、The DD schedule will move rightwards if ( )

A.There is an increase in government spending

B.There is a tax cut

C.There is an inrease in investment

D.There is a rise in foreign price level

9、A permanent increase in the money supply has no lasting effect on ( )

A domestic output

B exchange rate

C relative prices

D domestic interest rate

10、If an economy is in equilibrium, a permanent expansionary fiscal policy in home country eventually causes( )

A.All money prices to rise in proportion

B.Exchange rate to rise in proportion to

C.Appreciation of domestic currency