经济学原理对应练习Ch 30.docx

经济学原理对应练习Ch 30.docx

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经济学原理对应练习Ch30

Chapter30

MoneyGrowthandInflation

MultipleChoice

1.Inflationcanbemeasuredbythe

a.changeintheconsumerpriceindex.

b.percentagechangeintheconsumerpriceindex.

c.percentagechangeinthepriceofaspecificcommodity.

d.changeinthepriceofaspecificcommodity.

ANS:

BPTS:

1DIF:

1REF:

30-1

TOP:

InflationMSC:

Definitional

2.Overthelast70yearstheaverageannualU.S.inflationratewasabout

a.2percent.

b.4percent.

c.6percent.

d.8percent.

ANS:

BPTS:

1DIF:

1REF:

30-1

TOP:

U.S.inflationMSC:

Definitional

3.Overthelast70yearstheaverageannualU.S.inflationratewasabout

a.2percentimplyingthatpriceshaveincreased10-fold.

b.4percentimplyingthatpriceshaveincreased10-fold.

c.2percentimplyingthatpriceshaveincreased16-fold.

d.4percentimplyingthatpricesincreasedabout16-fold.

ANS:

DPTS:

1DIF:

1REF:

30-1

TOP:

InflationrateMSC:

Definitional

4.Thepricelevelrisesfrom120to150.Whatwastheinflationrate?

a.30%

b.25%

c.20%

d.Noneoftheaboveiscorrect.

ANS:

BPTS:

1DIF:

1REF:

30-1

TOP:

InflationMSC:

Applicative

5.Thepricelevelrisesfrom120to126.Whatistheinflationrate?

a.3%

b.5%

c.6%

d.Noneoftheaboveiscorrect.

ANS:

BPTS:

1DIF:

1REF:

30-1

TOP:

InflationMSC:

Applicative

6.Whenpricesarefalling,economistssaythatthereis

a.disinflation.

b.deflation.

c.acontraction.

d.aninvertedinflation.

ANS:

BPTS:

1DIF:

1REF:

30-1

TOP:

DeflationMSC:

Definitional

7.Ifthepriceindexinsomecountrywerefallingovertime,economistswouldsaythatcountryhad

a.disinflation.

b.deflation.

c.acontraction.

d.aninvertedinflation.

ANS:

BPTS:

1DIF:

1REF:

30-1

TOP:

DeflationMSC:

Applicative

8.Deflation

a.increasestheabilitytopaydebtsandraisesthevalueofmoney.

b.increasestheabilitytopaydebtsandlowersthevalueofmoney.

c.reducestheabilitytopaydebtsandraisesthevalueofmoney.

d.reducestheabilitytopaydebtsandlowersthevalueofmoney.

ANS:

CPTS:

1DIF:

2REF:

30-1

TOP:

U.S.inflationMSC:

Interpretive

9.WhichofthefollowingstatementsaboutU.S.inflationisnotcorrect?

a.LowinflationwasviewedasatriumphofPresidentCarter'seconomicpolicy.

b.Therewerelongperiodsinthenineteenthcenturyduringwhichpricesfell.

c.TheU.S.publichasviewedinflationofeven7percentasamajoreconomicproblem.

d.TheU.S.inflationratehasvariedovertime,butinternationaldatashowsevenmorevariation.

ANS:

APTS:

1DIF:

1REF:

30-1

TOP:

U.S.inflationMSC:

Definitional

10.WhichofthefollowingconcerningthehistoryofU.S.inflationisnotcorrect?

a.Pricesroseatanaverageannualrateofabout4percentoverthelast70years.

b.Therewasabouta16-foldincreaseinthepriceleveloverthelast70years.

c.Inflationinthe1970swasbelowtheaverageoverthelast70years.

d.Duringit’shistorytheUnitedStateshasexperiencedperiodsofdeflation.

ANS:

CPTS:

1DIF:

1REF:

30-1

TOP:

U.S.inflationMSC:

Definitional

11.Whichofthefollowingiscorrect?

a.hyperinflationisaperiodofextraordinarilyhighinflation.

b.deflationisnegativeinflation,notjustadecreaseintheinflationrate.

c.duringthe1990sUSinflationaveraged2%peryear.

d.Alloftheabovearecorrect.

ANS:

DPTS:

1DIF:

1REF:

30-1

TOP:

InflationMSC:

Definitional

12.Therewashyperinflation

a.during1880-1896intheUnitedStates.

b.inpost-WorldWarIGermany.

c.duringthe1970sintheUnitedStates.

d.Alloftheabovearecorrect.

ANS:

BPTS:

1DIF:

1REF:

30-1

TOP:

HyperinflationMSC:

Definitional

13.Theclassicaltheoryofinflation

a.isalsoknownasthequantitytheoryofmoney.

b.wasdevelopedbysomeoftheearliesteconomicthinkers.

c.isusedbymostmoderneconomiststoexplainthelong-rundeterminantsoftheinflationrate.

d.Alloftheabovearecorrect.

ANS:

DPTS:

1DIF:

1REF:

30-1

TOP:

ClassicaldichotomyMSC:

Definitional

14.Thequantitytheoryofmoney

a.isafairlyrecentadditiontoeconomictheory.

b.canexplainbothmoderateinflationandhyperinflation.

c.arguesthatinflationiscausedbytoolittlemoneyintheeconomy.

d.Alloftheabovearecorrect.

ANS:

BPTS:

1DIF:

1REF:

30-1

TOP:

QuantitytheoryMSC:

Definitional

15.Economistsallagreethat

a.neitherhighinflationnormoderateinflationisverycostly.

b.bothhighandmoderateinflationarequitecostly.

c.highinflationiscostly,butdisagreeaboutthecostsofmoderateinflation.

d.moderateinflationisascostlyashighinflation.

ANS:

CPTS:

1DIF:

1REF:

30-1

TOP:

InflationcostsMSC:

Definitional

16.Asthepriceleveldecreases,thevalueofmoney

a.increases,sopeoplewanttoholdmoreofit.

b.increases,sopeoplewanttoholdlessofit.

c.decreases,sopeoplewanttoholdmoreofit.

d.decreases,sopeoplewanttoholdlessofit.

ANS:

BPTS:

1DIF:

2REF:

30-1

TOP:

MoneydemandMSC:

Definitional

17.Anincreaseinthepricelevelmakesthevalueofmoney

a.increase,sopeoplewanttoholdmoreofit.

b.increase,sopeoplewanttoholdlessofit.

c.decrease,sopeoplewanttoholdmoreofit.

d.decrease,sopeoplewanttoholdlessofit.

ANS:

CPTS:

1DIF:

2REF:

30-1

TOP:

MoneydemandMSC:

Definitional

18.Whenthepricelevelfalls,thenumberofdollarsneededtobuyarepresentativebasketofgoods

a.increases,sothevalueofmoneyrises.

b.increases,sothevalueofmoneyfalls.

c.decreases,sothevalueofmoneyrises.

d.decreases,sothevalueofmoneyfalls.

ANS:

CPTS:

1DIF:

1REF:

30-1

TOP:

ValueofmoneyMSC:

Definitional

19.Whenthepricelevelrises,thenumberofdollarsneededtobuyarepresentativebasketofgoods

a.increases,andsothevalueofmoneyrises.

b.increases,andsothevalueofmoneyfalls.

c.decreases,andsothevalueofmoneyrises.

d.decreases,andsothevalueofmoneyfalls

ANS:

BPTS:

1DIF:

1REF:

30-1

TOP:

ValueofmoneyMSC:

Definitional

20.Thesupplyofmoneyisdeterminedby

a.thepricelevel.

b.theTreasuryandCongressionalBudgetOffice.

c.theFederalReserveSystem.

d.thedemandformoney.

ANS:

CPTS:

1DIF:

1REF:

30-1

TOP:

MoneysupplyMSC:

Definitional

21.Thesupplycurveofmoneyisverticalbecausethequantityofmoneysuppliedincreases

a.whenthevalueofmoneyincreases.

b.whenthevalueofmoneydecreases.

c.onlyifpeopledesiretoholdmoremoney.

d.onlyifthecentralbankincreasesthemoneysupply.

ANS:

DPTS:

1DIF:

1REF:

30-1

TOP:

MoneysupplyMSC:

Definitional

22.Thesupplyofmoneyincreaseswhen

a.thevalueofmoneyincreases.

b.theinterestrateincreases.

c.theFedmakesopen-marketpurchases.

d.Noneoftheaboveiscorrect.

ANS:

CPTS:

1DIF:

2REF:

30-1

TOP:

MoneysupplyMSC:

Definitional

23.Moneydemandrefersto

a.thetotalquantityoffinancialassetsthatpeoplewanttohold.

b.howmuchincomepeoplewanttomakeperyear.

c.howmuchwealthpeoplewanttoholdinliquidform.

d.howmuchcurrencytheFederalReservedecidestoprint.

ANS:

CPTS:

1DIF:

1REF:

30-1

TOP:

MoneydemandMSC:

Definitional

24.Whenthemoneymarketisdrawnwiththevalueofmoneyontheverticalaxis,themoneydemandcurveslopes

a.upwardbecauseathigherpricespeoplewanttoholdmoremoney.

b.downwardbecauseathigherpricespeoplewanttoholdmoremoney.

c.downwardbecauseathigherpricepeoplewanttoholdlessmoney.

d.upward,becauseathigherpricespeoplewanttoholdlessmoney.

ANS:

BPTS:

1DIF:

1REF:

30-1

TOP:

MoneydemandMSC:

Definitional

25.Whenthemoneymarketisdrawnwiththevalueofmoneyontheverticalaxis,asthepricelevelincreasesthequantityofmoney

a.demandedincreases.

b.demandeddecreases.

c.suppliedincreases.

d.supplieddecreases.

ANS:

APTS:

1DIF:

1REF:

30-1

TOP:

MoneydemandMSC:

Interpretive

26.Whenthemoneymarketisdrawnwiththevalueofmoneyontheverticalaxis,anincreaseinthepricelevelcausesa

a.shifttotherightofthemoneydemandcurve.

b.shifttotheleftofthemoneydemandcurve.

c.movementtotheleftalongthemoneydemandcurve.

d.movementtotherightalongthemoneydemandcurve.

ANS:

DPTS:

1DIF:

2REF:

30-1

TOP:

MoneydemandMSC:

Interpretive

27.Whenthemoneymarketisdrawnwiththevalueofmoneyontheverticalaxis,asthepricelevelincreases,thevalueofmoney

a.increases,sothequantityofmoneydemandedincreases.

b.increases,sothequantityofmoneydemandeddecreases.

c.decreases,sothequantityofmoneydemandeddecreases.

d.decreases,sothequantityofmoneydemandedincreases.

ANS:

DPTS:

1DIF:

2REF:

30-1

TOP:

MoneydemandMSC:

Definitional

28.Whenthemoneymarketisdrawnwiththevalueofmoneyontheverticalaxis,

a.moneydemandslopesupandmoneysupplyishorizontal.

b.moneydemandslopesdownandmoneysupplyisvertical.

c.moneydemandslopesupandmoneysupplyisvertical.

d.moneydemandslopesdownandmoneysupplyishorizontal.

ANS:

BPTS:

1DIF:

1REF:

30-1

TOP:

Moneydemand|MoneysupplyMSC:

Definitional

29.Whenthemoneymarketisdrawnwiththevalueofmoneyontheverticalaxis,long-runequilibriumisobtainedwhenthequantitydemandedandquantitysuppliedofmoneyareequalduetoadjustmentsinthe

a.thevalueofmoney.

b.realinterestrates.

c.nominalinterestrates.

d.moneysupply.

ANS:

APTS:

1DIF:

1REF:

30-1

TOP:

MoneymarketMSC:

Definitional

30.Whenthemoneymarketisdrawnwiththevalueofmoneyontheverticalaxis,ifthepricelevelisabovetheequilibriumlevel,thereisan

a.excessdemandformoney,sothepricelevelwillrise.

b.excessdemandformoney,sothepricelevelwillfall.

c.excesssupplyofmon