問題一覧
1
The IS curve represents
the combinations of output and the interest rate where the goods market is in equilibrium.
2
The IS curve will shift to the right when which of the following occurs?
an increase in government spending
3
Which of the following occurs as the economy moves leftward along a given IS curve?
An increase in the interest rate causes investment spending to decrease.
4
During 2008 in the United States, consumer confidence fell significantly. Which of the following will occur as a result of this reduction in consumer confidence?
The IS curve will shift leftward.
5
Suppose policy makers decide to reduce taxes. This fiscal policy action will cause which of the following to occur?
The IS curve shifts and the economy moves along the LM curve.
6
For each interest rate, the LM curve illustrates the level of output where
money supply equals money demand.
7
The LM curve shifts down (or, equivalently, to the right) when which of the following occurs?
none of the above
8
Which of the following statements is consistent with a given (i.e., fixed) LM curve?
An increase in output causes an increase in money demand.
9
In late 2007 and early 2008, the U.S. Federal Reserve pursued expansionary monetary policy. Which of the following will occur as a result of this monetary policy action?
The LM curve shifts down.
10
Suppose the demand for money is not very sensitive to the interest rate. Given this information, we know that
the LM curve should be relatively steep.
11
Suppose the economy is currently operating on both the LM curve and the IS curve. Which of the following is true for this economy?
all of the above
12
Suppose the economy is operating on the LM curve but not on the IS curve. Given this information, we know that
the money market and bond markets are in equilibrium and the goods market is not in equilibrium.
13
Suppose the current level of output and the interest rate are such that the economy is operating on neither the IS nor LM curve. Which of the following is true for this economy?
all of the above
14
An increase in the money supply will cause an increase in which of the following variables
) all of the above
15
Suppose there is an increase in consumer confidence. Which of the following represents the complete list of variables that must increase in response to this increase in consumer confidence?
consumption, output and the interest rate
16
Suppose there is a simultaneous fiscal expansion and monetary expansion. We know with certainty that
output will increase.
17
Suppose there is a simultaneous fiscal expansion and monetary contraction. We know with certainty that
the interest rate will increase.
18
For this question, assume that investment spending depends only on output and no longer depends on the interest rate. Given this information, an increase in government spending
will cause investment to increase.
19
A reasonable dynamic assumption for the IS-LM model is that
the economy is always on the LM curve, but moves only slowly to the IS curve.
20
Under the reasonable dynamic assumptions discussed in the text, a monetary contraction should result in
an immediate rise in the interest rate, and then a fall in the interest rate over time.
21
Empirically it takes nearly ________ years for monetary policy to have its full effect on output.
2
22
Which of the following best defines the real interest rate (r)?
the amount of goods we must give up next year in order to consume more goods today
23
The nominal interest rate is
the type of interest rate typically reported in the financial pages of newspapers.
24
If the nominal interest rate 8% and expected inflation 3%, the expected real interest rate in year t is approximately
5%
25
Whenever the expected inflation rate is positive
none of the above
26
Suppose that the nominal interest rate increases while the expected inflation rate rises. Given this information, we know with certainty that the real interest rate
will fall, but only if the increase in the nominal rate is smaller than the increase in expected inflation.
27
The risk that interest payments will not be made, or that the face value of a bond is not repaid when a bond matures is
default risk.
28
Which of the following bonds are considered to be default-risk free?
U.S. Treasury bonds
29
The spread between the interest rates on bonds with default risk and default-free bonds is called the
risk premium.
30
Bonds with relatively high risk of default are called
junk bonds
31
Junk bonds, bonds with a low bond rating, are also known as
high-yield bonds.
32
The process of indirect finance using financial intermediaries is called
financial intermediation.
33
Which of the following statements are true?
A bank's balance sheet shows that total assets equal total liabilities plus equity capital.
34
Which of the following statements is false?
Bank capital is recorded as an asset on the bank balance sheet.
35
Which of the following are reported as liabilities on a bank's balance sheet?
checkable deposits
36
The leverage ratio is the ratio of a bank's
assets divided by capital.
37
How many interest rates were there in the IS-LM model in Chapter 5?
one
38
The new term introduced in the extended IS-LM model is
risk premium.
39
The policy rate is
determined by monetary policy.
40
The borrowing rate is
the rate at which consumers and firms can borrow.
41
When x increases
IS curve shifts to the left.
42
The Case-Shiller index is normalized to equal 100 in January
2000.
43
The Case-Shiller index reached its peak in
2006.
44
By 2006, about ________ of all U.S mortgages were subprimes.
20%
45
The mortgage is said to be underwater when
the value of the mortgage exceeds the value of the house.
46
In mid-2008, estimated losses on mortgages were estimated to be about ________ of U.S. GDP.
2%