布兰查德宏观经济学第七版第7版英文版chapter (5).docx

Macroeconomics7e(B1anchard)Chapter5:GoodsandFinancia1Markets.TheIS-1MMode15.1 TheGoodsMarketandtheISRe1ation1) TheIScurverepresentsA) thesing1e1eve1ofoutputwherethegoodsmarketisinequi1ibrium.B) thesing1e1eve1ofoutputwherefinancia1marketsareinequi1ibrium.C) thecombinationsofoutputandtheinterestratewherethemoneymarketisinequi1ibrium.D) thecombinationsofoutputandtheinterestratewherethegoodsmarketisinequi1ibrium.E) noneoftheaboveAnswer:DDiff:12) TheIScurvewi11shifttotherightwhenwhichofthefo11owingoccurs?A) anincreaseinthemoneysupp1yB) anincreaseingovernmentspendingC) areductionintheinterestrateD) a11oftheaboveE) noneoftheaboveAnswer:BDiff:23) Whichofthefo11owingoccursastheeconomymoves1eftwarda1ongagivenIScurve?A) Anincreaseintheinterestratecausesinvestmentspendingtodecrease.B) Anincreaseintheinterestratecausesmoneydemandtoincrease.C) Anincreaseintheinterestratecausesareductioninthemoneysupp1y.D) Areductioningovernmentspendingcausesareductionindemandforgoods.E) Anincreaseintaxescausesareductionindemandforgoods.Answer:ADiff:24) During2008intheUnitedStates,consumerconfidencefe11significant1y.Whichofthefo11owingwi11occurasaresu1tofthisreductioninconsumerconfidence?A) The1Mcurvewi11shiftup.B) The1Mcurvewi11shiftdown.C) TheIScurvewi11shiftrightward.D) TheIScurvewi11shift1eftward.E) TheIScurvewi11shiftrightward,andthe1Mcurvewi11shiftup.Answer:DDiff:25) Supposepo1icymakersdecidetoreducetaxes.Thisfisca1po1icyactionwi11causewhichofthefo11owingtooccur?A) The1Mcurveshiftsandtheeconomymovesa1ongtheIScurve.B) TheIScurveshiftsandtheeconomymovesa1ongthe1Mcurve.C) BoththeISand1Mcurvesshift.D) NeithertheISnorthe1Mcurveshifts.E) Outputwi11changecausingachangeinmoneydemandandashiftofthe1Mcurve.Answer:BDiff:26) Supposefisca1po1icymakersimp1ementapo1icytoreducethesizeofabudgetdeficit.BasedontheIS-1Mmode1,weknowwithcertaintythatthefo11owingwi11occurasaresu1tofthisfisca1po1icyaction.A) Investmentspendingwi11decrease.B) Investmentspendingwi11increase.C) Therewi11benochangeininvestmentspending.D) Investmentspendingmayincrease,decrease,ornotchange.E) noneoftheaboveAnswer:DDiff:37) Forthisquestion,assumethatinvestmentspendingdependson1yontheinterestrateandno1ongerdependsonoutput.Giventhisinformation,areductioningovernmentspendingA)wi11causeinvestmenttodecrease.8) wi11causeinvestmenttoincrease.9) maycauseinvestmenttoincreaseortodecrease.10) wi11havenoeffectonoutput.11) wi11causeareductioninoutputandhavenoeffectontheinterestrate.Answer:BDiff:38) Supposeinvestmentspendingisnotverysensitivetotheinterestrate.Giventhisinformation,weknowthatA) theIScurveshou1dbere1ative1yf1at.B) theIScurveshou1dbere1ative1ysteep.C) the1Mcurveshou1dbere1ative1yf1at.D) the1Mcurveshou1dbere1ative1ysteep.E) neithertheISnorthe1Mcurvewi11beaffected.Answer:BDiff:29) Exp1ainthedeterminantsofinvestment.Inc1udeinyouransweranexp1anationofhowachangeineachdeterminantaffectsinvestment.Answer:Investmentdependsonthe1eve1ofsa1es/outputandontheinterestrate.Asoutputchanges,thedemandforgoodswi11changeandfinswi11changeinvestmentsothattheircapacitychangeswiththe1eve1ofeconomicactivity(anddemand).Ia1sodependsontheinterestrate.Astheinterestraterises,thecostofborrowingrises.Firmswi11cutbackoninvestmentasborrowingcostsrise.Diff:210) WhatistheISre1ation?Exp1ainwhyIScurveisdownwards1oping.Answer:TheISre1ationshowsthecombinationsoftheinterestrateandthe1eve1ofoutputthatareconsistentwithequi1ibriuminthegoodsmarket.Anincreaseintheinterestrate1eadstoadec1ineinoutput.Consequent1y,theIScurveisdownwards1oping.Diff:211) Graphica11yderivetheIScurvefromthegoodsmarketequi1ibrium.Answer:Supposetheinitia1equi1ibriuminthegoodsmarketisatpointAwithinterestratei.Supposenowthattheinterestrateincreasesfromitsinitia1va1ueitoahigherva1uei,.Theincreaseintheinterestratedecreasesinvestment.Thedecreaseininvestment1eadstoadecreaseinoutput.Nowthenewequi1ibriumpointisatA',withahigherva1ueofiand1owerva1ueofY.AfterWep1otthecombinationsofiandYwhenthegoodsmarketisinequi1ibrium,wecanconnectthesetwopoints(AandA')togetadownwards1opingIScurve.Diff:25.2 Financia1Marketsandthe1MRe1ation1) Foreachinterestrate,the1Mcurvei11ustratesthe1eve1ofoutputwhereA) thegoodsmarketisinequi1ibrium.B) inventoryinvestmentequa1szero.C) moneysupp1yequa1smoneydemand.D) a11oftheaboveE) noneoftheaboveAnswer:CDiff:22) The1Mcurveshiftsdown(or,equiva1ent1y,totheright)whenwhichofthefo11owingoccurs?A)anincreaseintaxesB) anincreaseinoutputC) anopenmarketsa1eofbondsbythecentra1bankD) anincreaseinconsumerconfidenceE) noneoftheaboveAnswer:EDiff:23) Whichofthefo11owingstatementsisconsistentwithagiven(i.e.,fixed)1Mcurve?A) Areductionintheinterestratecausesinvestmentspendingtoincrease.B) Areductionintheinterestratecausesmoneydemandtodecrease.C) Areductionintheinterestratecausesanincreaseinthemoneysupp1y.D) Anincreaseinoutputcausesanincreaseindemandforgoods.E) Anincreaseinou