Toàn bộ những gì bạn cần để qua môn kinh tế học, tài liệu này tập hợp những câu hỏi trắc nghiệm mới nhất của kinh tế vi mô năm 2018. Về nội dung tài liệu, với các khái niệm phổ biến và khái quát nhất về kinh tế vi mô cũng như những giải thích về các cơ chế hoạt động của nền kinh tế, bộ giáo trình bao gồm 23 phần cung cấp cho người đọc các kiến thức khá toàn diện và chuyên sâu về các nguyên lý kinh tế học như các lý thuyết cổ điển, các lý thuyết về phát triển: nền kinh tế trong dài hạn, các lý thuyết về vòng tròn kinh tế: nền kinh tế trong ngắn hạn, các yếu tố vi mô ẩn sau kinh tế vĩ mô, các tranh luận về chính sách vĩ mô… Tất cả đều được giải thích và đánh giá bởi một vị giáo sư kinh tế hàng đầu trên thế giới. Các khái niệm trong sách được định nghĩa rất rõ ràng, dễ nắm bắt, dễ hiểu, có tóm tắt các chương tạo điều kiện tốt nhất cho việc ôn tập
Trang 1Money Growth and Inflation
TRUE/FALSE
1 The inflation rate is measured as the percentage change in a price index
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation
2 U.S prices rose at an average annual rate of about 4 percent over the last 70 years
MSC: Analytical
3 The United States has never had deflation
MSC: Definitional
4 In the 1990s, U.S prices rose at about the same rate as in the 1970s
MSC: Definitional
5 As the price level falls, the value of money falls
MSC: Interpretive
6 The price level is determined by the supply of, and demand for, money
MSC: Definitional
7 If the quantity of money supplied is greater than the quantity demanded, then prices should fall
MSC: Analytical
8 Dollar prices and relative prices are both nominal variables
NAT: Analytic LOC: The role of money
TOP: Nominal variables | Real variables MSC: Definitional
9 The quantity equation is M x V = P x Y.
MSC: Definitional
10 According to the Fisher effect, if inflation rises then the nominal interest rate rises
MSC: Definitional
11 An increase in money demand would create a surplus of money at the original value of money
MSC: Applicative
2014
Trang 212 Hyperinflations are associated with governments printing money to finance expenditures.
NAT: Analytic LOC: Unemployment and inflation TOP: Hyperinflation
MSC: Definitional
13 For a given level of money and real GDP, an increase in velocity would lead to an increase in the price level
MSC: Analytical
14 The quantity theory of money can explain hyperinflations but not moderate inflation
MSC: Interpretive
15 If P represents the price of goods and services measured in money, then 1/P is the value of money measured in
terms of goods and services
MSC: Interpretive
16 When the value of money is on the vertical axis, an increase in the price level shifts money demand to the right
MSC: Applicative
17 The money supply curve shifts to the left when the Fed buys government bonds
MSC: Analytical
18 When the value of money is on the vertical axis, the money supply curve slopes upward because an increase inthe value of money induces banks to create more money
MSC: Definitional
19 If the Fed increases the money supply, the equilibrium value of money decreases and the equilibrium price level increases
MSC: Analytical
20 A rising price level eliminates an excess supply of money
MSC: Analytical
21 A rising value of money eliminates an excess supply of money
MSC: Analytical
22 Nominal GDP measures output of final goods and services in physical terms
MSC: Interpretive
Trang 323 The classical dichotomy is useful for analyzing the economy because in the long run nominal variables are heavily influenced by developments in the monetary system, and real variables are not.
MSC: Definitional
24 The irrelevance of monetary changes for real variables is called monetary neutrality Most economists accept monetary neutrality as a good description of the economy in the long run, but not the short run
MSC: Interpretive
25 The quantity theory of money implies that if output and velocity are constant, then a 50 percent increase in the money supply would lead to less than a 50 percent increase in the price level
MSC: Applicative
26 The source of all four classic hyperinflations was high rates of money growth
MSC: Definitional
27 In the long run, an increase in the growth rate of the money supply leads to an increase in the real interest rate, but no change in the nominal interest rate
MSC: Definitional
28 Inflation induces people to spend more resources maintaining lower money holdings The costs of doing this are called shoeleather costs
MSC: Definitional
29 Shoeleather costs and menu costs are both costs of anticipated inflation
NAT: Analytic LOC: Unemployment and inflation
TOP: Shoeleather costs of inflation | Menu costs of inflation MSC: Definitional
30 For a given real interest rate, an increase in the inflation rate reduces the after-tax real interest rate
NAT: Analytic LOC: Unemployment and inflation
TOP: Inflation | Taxes | Real interest rate MSC: Analytical
31 Inflation necessarily distorts saving when either real interest income or nominal interest income is taxed
NAT: Analytic LOC: The role of money TOP: Inflation | Real interest rateMSC: Interpretive
32 Inflation distorts savings when real interest income, rather than nominal interest income, is taxed
NAT: Analytic LOC: The role of money TOP: Inflation | Real interest rateMSC: Interpretive
33 Suppose the nominal interest rate is 10 percent; the tax rate on interest income is 28 percent, and the inflation rate is 6 percent Then the after-tax real interest rate is -3.2 percent
MSC: Interpretive
Trang 434 Suppose the nominal interest rate is 5 percent; the tax rate on interest income is 30 percent, and the after-tax real interest rate is 0.8 percent Then the inflation rate is 2.7 percent.
MSC: Interpretive
35 If the Fed were to unexpectedly increase the money supply, creditors would gain at the expense of debtors
NAT: Analytic LOC: The role of money
TOP: Wealth redistribution | Inflation MSC: Applicative
36 If inflation is higher than expected, then borrowers make nominal interest payments that are less than they expected
NAT: Analytic LOC: Unemployment and inflation TOP: Menu costs of inflation
MSC: Applicative
37 Inflation is costly only if it is unanticipated
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation costs
MSC: Interpretive
38 Even though monetary policy is neutral in the short run, it may have profound real effects in the long run
2 Explain the adjustment process in the money market that creates a change in the price level when the money supply increases
ANS:
When the money supply increases, there is an excess supply of money at the original value of money After the money supply increases, people have more money than they want to hold in their purses, wallets and checking accounts They use this excess money to buy goods and services or lend it out to other people to buy goods and services The increase in expenditures causes prices to rise and the value of money to fall As the value of money falls, the quantity of money people want to hold increases so that the excess supply is eliminated At the end of this process the money market is in equilibrium at a higher price level and a lower value of money
MSC: Analytical
Trang 53 Suppose the Fed sells government bonds Use a graph of the money market to show what this does to the value
of money
ANS:
When the Fed sells government bonds, the money supply decreases This shifts the money supply curve from MS1 to
MS2 and makes the value of money increase Since money is worth more, it takes less to buy goods with it, which means the price level falls
MSC: Analytical
4 Using separate graphs, demonstrate what happens to the money supply, money demand, the value ofmoney, and the price level if:
a the Fed increases the money supply
b people decide to demand less money at each value of money
ANS:
a The Fed increases the money supply When the Fed increases the money supply, the money supply curve
shifts right from MS1 to MS2 This shift causes the value of money to fall, so the price level rises
b People decide to demand less money at each value of money Since people want to hold less at each
value of money, it follows that the money demand curve will shift to the left from MD1 to MD2 The decrease in money demand results in a lower value of money and so a higher price level
MSC: Analytical
Trang 65 According to the classical dichotomy, what changes nominal variables? What changes real variables?
ANS:
The classical dichotomy argues that nominal variables are determined primarily by developments in the monetary system such as changes in money demand and supply Real variables are largely independent of the monetary system and are determined by productivity and real changes in the factor and loanable funds markets
LOC: The role of money TOP: Nominal variables | Real variables
MSC: Interpretive
8 Identify each of the following as nominal or real variables
a the physical output of goods and services
b the overall price level
c the dollar price of apples
d the price of apples relative to the price of oranges
e the unemployment rate
f the amount that shows up on your paycheck after taxes
g the amount of goods you can purchase with the wage you get each hour
h the taxes that you pay the government
LOC: The role of money TOP: Nominal variables | Real variables
MSC: Interpretive
Trang 79 Define each of the symbols and explain the meaning of M V = P Y.
ANS:
M is the quantity of money, V is the velocity of money, P is the price level, and Y is the quantity of output P Y is
nominal GDP The amount people spend should equal the amount of money in the economy times the average number of times each unit of currency is spent
10 What assumptions are necessary to argue that the quantity equation implies that increases in the money supply lead to proportional changes in the price level?
ANS:
We must suppose that V is relatively constant and that changes in the money supply have no effect on real output.
by taxing their money holdings through inflation rather than by sending them a tax bill In countries where
governments are unable or unwilling to raise revenues by raising taxes explicitly, the inflation tax may be an alternative source of revenue
12 Economists agree that increases in the money-supply growth rate increase inflation and that inflation is undesirable So why have there been hyperinflations and how have they been ended?
ANS:
Typically, the government in countries that had hyperinflation started with high spending, inadequate tax revenue, and limited ability to borrow Therefore, they turned to the printing presses to pay their bills Massive and continued increases in the quantity of money led to hyperinflation, which ended when the governments instituted fiscal reformseliminating the need for the inflation tax and subsequently slowed money supply growth
MSC: Interpretive
13 Suppose that velocity and output are constant and that the quantity theory and the Fisher effect both hold What happens to inflation, real interest rates, and nominal interest rates when the money supply growth rate increases from 5 percent to 10 percent?
ANS:
Inflation and nominal interest rates each increase by 5 percent points There is no change in the real interest rate or any other real variable
Trang 814 In recent years Venezuela and Russia have had much higher nominal interest rates than the United States while Japan has had lower nominal interest rates What would you predict is true about money growth in theseother countries? Why?
ANS:
The Fisher effect says that increases in the inflation rate lead to one-to-one increases in nominal interest rates The quantity theory says that in the long run, inflation increases one-to-one with money supply growth It follows that differences in nominal interest rates may be due to differences in money supply growth rates It is reasonable to guess that much higher nominal interest rates in Venezuela and Russia indicate higher money supply growth while lower interest rates in Japan indicate lower money supply growth
15 The U.S Treasury Department issues inflation-indexed bonds What are inflation-indexed bonds and why are they important?
ANS:
Inflation-indexed bonds are bonds whose interest and principal payments are adjusted upward for inflation,
guaranteeing their real purchasing power in the future They are important because they provide a safe, proof asset for savers and they may allow the Treasury to borrow more easily at a lower current cost
16 List and define any two of the costs of high inflation
ANS:
The costs include:
Shoeleather costs: the resources wasted when inflation induces people to reduce their money holdings.
Menu costs: the cost of more frequent price changes at higher inflation rates.
Relative Price Variability: because prices change infrequently, higher inflation causes relative prices to vary more
Decisions based on relative prices are then distorted so that resources may not be allocated efficiently
Inflation Induced Tax Distortions: the income tax is not completely indexed for inflation; an increase in nominal
income created by inflation results in higher real tax rates that discourage savings
Confusion and Inconvenience: inflation decreases the reliability of the unit of account making it more complicated
to differentiate successful and unsuccessful firms thereby impeding the efficient allocation of funds to alternative investments
Unexpected Inflation: inflation decreases the real value of debt thereby transferring wealth from creditors to debtors.
MSC: Definitional
17 Inflation distorts relative prices What does this mean and why does it impose a cost on society?
ANS:
Relative prices are the value of one good in terms of other goods Relative prices ordinarily provide signals
concerning the relative scarcity of goods so the goods may be allocated efficiently Some prices change infrequently,
so that when inflation rises, there is greater variation in relative prices However, changes in relative prices created
by inflation do not signal changes in the scarcity of goods and so lead to an inefficient allocation of goods and resources
LOC: The role of money TOP: Relative price variability
MSC: Interpretive
Trang 918 Explain how inflation affects savings.
ANS:
Inflation discourages savings Income tax is collected on nominal rather than real interest rates So an increase in inflation will increase nominal interest rates and taxes The increase in taxes in turn lowers the real return on savingsand so discourages savings
MSC: Applicative
19 The U.S Treasury Department began issuing inflation-indexed bonds in early 1997 Since these assets are virtually risk free, both in terms of default risk and inflation risk, will they quickly replace all other kinds of assets that still entail risk of one kind or another, such as ordinary government bonds or corporate bonds? Explain
ANS:
When individuals are choosing between assets of different kinds, they consider both expected return and risk Because the new inflation-indexed bonds have very low risk, they will also have very low real interest rates So theywill not replace other, more risky assets that promise to pay a much higher real interest rate They do, however, offer
a way of escaping some inflation risk, and have become a popular addition to portfolios
Sec00 - Money Growth and Inflation
MULTIPLE CHOICE
1 Over the past 70 years, prices in the U.S have risen on average about
a 2 percent per year
b 4 percent per year
c 6 percent per year
d 8 percent per year
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rate
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rate
MSC: Definitional
3 Over the last 70 years, the average annual U.S inflation rate was about
a 2 percent, implying that prices have increased 10-fold
b 4 percent, implying that prices have increased 10-fold
c 2 percent, implying that prices have increased 16-fold
d 4 percent, implying that prices increased about 16-fold
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rate
MSC: Definitional
Trang 104 Inflation can be measured by the
a change in the consumer price index
b percentage change in the consumer price index
c percentage change in the price of a specific commodity
d change in the price of a specific commodity
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation
MSC: Definitional
5 Which of the following is not correct?
a The inflation rate is measured as the percentage change in a price index
b For the last 40 or so years, U.S inflation hasn’t shown much variation from its average rate of
about 2 percent
c During the 19th century there were long periods of falling prices
d Some economists argue that the costs of moderate inflation are not nearly as large as the general
public believes
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation
MSC: Interpretive
6 In which of the following cases was the inflation rate 10 percent over the last year?
a One year ago the price index had a value of 110 and now it has a value of 120
b One year ago the price index had a value of 120 and now it has a value of 132
c One year ago the price index had a value of 126 and now it has a value of 140
d One year ago the price index had a value of 145 and now it has a value of 163
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rate
d None of the above is correct
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rate
d None of the above is correct
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rate
NAT: Analytic LOC: Unemployment and inflation TOP: Deflation
MSC: Definitional
Trang 1110 Deflation
a increases incomes and enhances the ability of debtors to pay off their debts
b increases incomes and reduces the ability of debtors to pay off their debts
c decreases incomes and enhances the ability of debtors to pay off their debts
d decreases incomes and reduces the ability of debtors to pay off their debts
NAT: Analytic LOC: Unemployment and inflation TOP: Deflation
NAT: Analytic LOC: Unemployment and inflation TOP: Deflation
MSC: Interpretive
12 The term hyperinflation refers to
a the spread of inflation from one country to others
b a decrease in the inflation rate
c a period of very high inflation
d inflation accompanied by a recession
NAT: Analytic LOC: Unemployment and inflation TOP: Hyperinflation
MSC: Definitional
13 Which of the following statements about U.S inflation is not correct?
a Low inflation was viewed as a triumph of President Carter's economic policy
b There were long periods in the nineteenth century during which prices fell
c The U.S public has viewed inflation rates of even 7 percent as a major economic problem
d The U.S inflation rate has varied over time, but international data show even more variation
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation
MSC: Definitional
14 Which of the following statements concerning the history of U.S inflation is not correct?
a Prices rose at an average annual rate of about 4 percent over the last 70 years
b There was about a 16-fold increase in the price level over the last 70 years
c Inflation in the 1970s was below the average over the last 70 years
d During its history the United States has experienced periods of deflation
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation
MSC: Definitional
15 Which of the following is correct?
a A period of hyperinflation is a period of extraordinarily high or extraordinarily low inflation.
b A period of deflation is any period during which the inflation rate is decreasing.
c During the 1990s, U.S inflation averaged about 2 percent per year
d All of the above are correct
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation
MSC: Definitional
Trang 1216 There was hyperinflation during the
a period 1880-1896 in the United States
b 1970s in the United States
c early part of the current century in Zimbabwe
d All of the above are correct
NAT: Analytic LOC: Unemployment and inflation TOP: Hyperinflation
NAT: Analytic LOC: Unemployment and inflation TOP: Hyperinflation
MSC: Definitional
18 Economists agree that
a neither high inflation nor moderate inflation is very costly
b both high and moderate inflation are quite costly
c high inflation is costly, but they disagree about the costs of moderate inflation
d moderate inflation is as costly as high inflation
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation costs
MSC: Interpretive
Sec01 - Money Growth and Inflation - The Classical Theory of Inflation
MULTIPLE CHOICE
1 Inflation is
a more about the value of goods than about the value of money
b more about the value of money than about the value of goods
c best understood by looking at the individual prices that make up price indexes
d viewed by most economists today as a phenomenon that cannot be explained by the ideas of the
“classical” economists
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation
MSC: Interpretive
2 The value of money falls as the price level
a rises, because the number of dollars needed to buy a representative basket of goods rises
b rises, because the number of dollars needed to buy a representative basket of goods falls
c falls, because the number of dollars needed to buy a representative basket of goods rises
d falls, because the number of dollars needed to buy a representative basket of goods falls
MSC: Interpretive
Trang 133 If P denotes the price of goods and services measured in terms of money, then
a 1/P represents the value of money measured in terms of goods and services.
b P can be regarded as the “overall price level.”
c an increase in the value of money is associated with a decrease in P.
d All of the above are correct
MSC: Interpretive
4 If P denotes the price of goods and services measured in terms of money, then
a 1/P represents the value of money measured in terms of goods and services.
b P can be interpreted as the inflation rate.
c the supply of money influences the value of P, but the demand for money does not.
d All of the above are correct
MSC: Interpretive
5 When we assume that the supply of money is a variable that the central bank controls, we
a must then assume as well that the demand for money is not influenced by the value of money
b must then assume as well that the price level is unrelated to the value of money
c are ignoring the fact that, in the real world, households are suppliers of money also
d are ignoring the complications introduced by the role of the banking system
NAT: Analytic LOC: The role of money
TOP: Money market | Money supply MSC: Definitional
7 When the money market is drawn with the value of money on the vertical axis, a decrease in the price level causes a
a movement to the right along the money demand curve
b movement to the left along the money demand curve
c shift to the right of the money supply curve
d shift to the left of the money supply curve
NAT: Analytic LOC: The role of money
TOP: Money market | Money demand MSC: Applicative
8 When the money market is drawn with the value of money on the vertical axis, if the Federal Reserve buys bonds, then the money supply curve
a shifts rightward, causing the price level to rise
b shifts rightward, causing the price level to fall
c shifts leftward, causing the price level to rise
d shifts leftward, causing the price level to fall
NAT: Analytic LOC: Monetary and fiscal policy
TOP: Money market | Money supply MSC: Interpretive
Trang 149 When the money market is drawn with the value of money on the vertical axis, if the Federal Reserve sells bonds, then the money supply curve
a shifts rightward, causing the value of money measured in terms of goods and services to rise
b shifts rightward, causing the value of money measured in terms of goods and services to fall
c shifts leftward, causing the value of money measured in terms of goods and services to rise
d shifts leftward, causing the value of money measured in terms of goods and services to fall
NAT: Analytic LOC: Monetary and fiscal policy
TOP: Money market | Money supply MSC: Interpretive
10 When the money market is drawn with the value of money on the vertical axis, if money demand shifts leftward, then initially there is an
a excess demand for money which causes the price level to rise
b excess demand for money which causes the price level to fall
c excess supply of money which causes the price level to rise
d excess supply of money which causes the price level to fall
MSC: Analytical
11 The price level falls if either
a money demand or money supply shifts rightward
b money demand shifts rightward or money supply shifts leftward
c money demand shifts leftward or money supply shifts rightward
d money demand or money supply shifts leftward
MSC: Analytical
12 The price level rises if either
a money demand shifts rightward or money supply shifts leftward; this rise in the price level is
associated with a rise in the value of money
b money demand shifts rightward or money supply shifts leftward; this rise in the price level is
associated with a fall in the value of money
c money demand shifts leftward or money supply shifts rightward; this rise in the price level is
associated with a rise in the value of money
d money demand shifts leftward or money supply shifts rightward; this rise in the price level is
associated with a fall in the value of money
MSC: Analytical
13 As the price level rises, the value of money
a falls, and people desire to hold less of it
b falls, and people desire to hold more of it
c rises, and people desire to hold less of it
d rises, and people desire to hold more of it
MSC: Analytical
Trang 1514 Money demand depends on
a the price level and the interest rate
b the price level but not the interest rate
c the interest rate but not the price level
d neither the price level nor the interest rate
MSC: Applicative
16 If M = 10,000, P = 2, and Y = 20,000, then velocity =
a 4 Velocity will rise if money changes hands more frequently
b 4 Velocity will rise if money changes hands less frequently
c 8 Velocity will rise if money changes hands more frequently
d 8 Velocity will rise if money changes hands less frequently
d All of the above are correct
MSC: Interpretive
Trang 1620 Other things the same, an increase in velocity means that
a the rate at which money changes hands falls, so the price level rises
b the rate at which money changes hands falls, so the price level falls
c the rate at which money changes hands rises, so the price level rises
d the rate at which money changes hands rises, so the price level falls
MSC: Analytical
21 According to the quantity theory of money, a 2 percent increase in the money supply
a causes the price level to fall by 2 percent
b leaves the price level unchanged
c causes the price level to rise by less than 2 percent
d causes the price level to rise by 2 percent
MSC: Definitional
22 The inflation tax refers to
a the revenue a government creates by printing money
b higher inflation which requires more frequent price changes
c the idea that, other things the same, an increase in the tax rate raises the inflation rate
d taxes being indexed for inflation
NAT: Analytic LOC: Unemployment and inflation TOP: Inflation tax
NAT: Analytic LOC: Unemployment and inflation
TOP: Real interest rate | Nominal interest rate MSC: Analytical
24 Which of the following combinations of real interest rates and inflation implies a nominal interest rate of 7 percent?
a a real interest rate of 2.5 percent and an inflation rate of 2 percent
b a real interest rate of 4 percent and an inflation rate of 11 percent
c a real interest rate of 6 percent and an inflation rate of 1 percent
d a real interest rate of 5.5 percent and an inflation rate of 3 percent
NAT: Analytic LOC: Unemployment and inflation
TOP: Real interest rate | Nominal interest rate MSC: Analytical
25 The classical theory of inflation
a is also known as the quantity theory of money
b was developed by some of the earliest economic thinkers
c is used by most modern economists to explain the long-run determinants of the inflation rate
d All of the above are correct
NAT: Analytic LOC: Unemployment and inflation TOP: Classical dichotomy
MSC: Definitional
Trang 1726 To explain the long-run determinants of the price level and the inflation rate, most economists today rely on the
a quantity theory of money
b price-index theory of money
c theory of hyperinflation
d disequilibrium theory of money and inflation
NAT: Analytic LOC: Unemployment and inflation TOP: Quantity theory of money
MSC: Definitional
27 The quantity theory of money
a is a fairly recent addition to economic theory
b can explain both moderate inflation and hyperinflation
c argues that inflation is caused by too little money in the economy
d All of the above are correct
MSC: Definitional
28 As the price level decreases, the value of money
a increases, so people want to hold more of it
b increases, so people want to hold less of it
c decreases, so people want to hold more of it
d decreases, so people want to hold less of it
MSC: Definitional
29 An increase in the price level makes the value of money
a increase, so people want to hold more of it
b increase, so people want to hold less of it
c decrease, so people want to hold more of it
d decrease, so people want to hold less of it
MSC: Definitional
30 When the price level falls, the number of dollars needed to buy a representative basket of goods
a increases, so the value of money rises
b increases, so the value of money falls
c decreases, so the value of money rises
d decreases, so the value of money falls
MSC: Definitional
31 When the price level rises, the number of dollars needed to buy a representative basket of goods
a increases, and so the value of money rises
b increases, and so the value of money falls
c decreases, and so the value of money rises
d decreases, and so the value of money falls
MSC: Definitional
Trang 1832 The supply of money is determined by
a the price level
b the Treasury and Congressional Budget Office
c the Federal Reserve System
d the demand for money
MSC: Definitional
33 The supply curve of money is vertical because the quantity of money supplied increases
a when the value of money increases
b when the value of money decreases
c only if people desire to hold more money
d only if the central bank increases the money supply
MSC: Definitional
34 The supply of money increases when
a the value of money increases
b the interest rate increases
c the Fed makes open-market purchases
d None of the above is correct
MSC: Definitional
35 Money demand refers to
a the total quantity of financial assets that people want to hold
b how much income people want to earn per year
c how much wealth people want to hold in liquid form
d how much currency the Federal Reserve decides to print
MSC: Definitional
36 When the money market is drawn with the value of money on the vertical axis, the money demand curve slopes
a upward, because at higher prices people want to hold more money
b downward, because at higher prices people want to hold more money
c downward, because at higher price people want to hold less money
d upward, because at higher prices people want to hold less money
MSC: Interpretive
Trang 1938 When the money market is drawn with the value of money on the vertical axis, an increase in the price level causes a
a shift to the right of the money demand curve
b shift to the left of the money demand curve
c movement to the left along the money demand curve
d movement to the right along the money demand curve
MSC: Interpretive
39 When the money market is drawn with the value of money on the vertical axis, as the price level increases, the value of money
a increases, so the quantity of money demanded increases
b increases, so the quantity of money demanded decreases
c decreases, so the quantity of money demanded decreases
d decreases, so the quantity of money demanded increases
MSC: Definitional
40 When the money market is drawn with the value of money on the vertical axis,
a money demand slopes upward and money supply is horizontal
b money demand slopes downward and money supply is horizontal
c money demand slopes upward and money supply is vertical
d money demand slope downward and money supply is vertical
NAT: Analytic LOC: The role of money
TOP: Money demand | Money supply MSC: Definitional
41 When the money market is drawn with the value of money on the vertical axis, long-run equilibrium
is obtained when the quantity demanded and quantity supplied of money are equal due to
adjustments in
a the value of money
b real interest rates
c nominal interest rates
d the money supply
MSC: Definitional
42 When the money market is drawn with the value of money on the vertical axis, if the price level is above the equilibrium level, there is an
a excess demand for money, so the price level will rise
b excess demand for money, so the price level will fall
c excess supply of money, so the price level will rise
d excess supply of money, so the price level will fall
MSC: Analytical
Trang 2043 When the money market is drawn with the value of money on the vertical axis, if the value of money
is below the equilibrium level,
a the price level will rise
b the value of money will rise
c money demand will shift leftward
d money demand will shift rightward
MSC: Analytical
44 Suppose the money market, drawn with the value of money on the vertical axis, is in equilibrium If the money supply increases, then at the old value of money there is an
a excess demand for money that will result in an increase in spending
b excess demand for money that will result in a decrease in spending
c excess supply of money that will result in an increase in spending
d excess supply of money that will result in a decrease in spending
MSC: Analytical
45 Which of the following is correct?
a If the Fed purchases bonds in the open market, then the money supply curve shifts right A change
in the price level does not shift the money supply curve
b If the Fed sells bonds in the open market, then the money supply curve shifts right A change in the price level does not shift the money supply curve
c If the Fed purchases bonds, then the money supply curve shifts right An increase in the price level shifts the money supply curve right
d If the Fed sells bonds, then the money supply curve shifts right A decrease in the price level shifts the money supply curve right
MSC: Analytical
46 When the money market is drawn with the value of money on the vertical axis, an increase in the money supply shifts the money supply curve to the
a right, lowering the price level
b right, raising the price level
c left, raising the price level
d left, lowering the price level
MSC: Applicative
47 If the Fed increases the money supply, then 1/P
a falls, so the value of money falls
b falls, so the value of money rises
c rises, so the value of money falls
d rises, so the value of money rises
MSC: Interpretive
Trang 2148 When the money market is drawn with the value of money on the vertical axis, an increase in the money supply
a increases the price level and increases the value of money
b increases the price level and decreases the value of money
c decreases the price level and increases the value of money
d decreases the price level and decreases the value of money
MSC: Applicative
49 When the money market is drawn with the value of money on the vertical axis, an increase in the money supply causes the equilibrium value of money
a and equilibrium quantity of money to increase
b and equilibrium quantity of money to decrease
c to increase, while the equilibrium quantity of money decreases
d to decrease, while the equilibrium quantity of money increases
MSC: Applicative
50 When the money market is drawn with the value of money on the vertical axis, if the Fed sells bondsthen
a the money supply and the price level increase
b the money supply and the price level decrease
c the money supply increases and the price level decreases
d the money supply increases and the price level increases
MSC: Applicative
51 When the money market is drawn with the value of money on the vertical axis, if there is a surplus
of money then
a the value of money rises which will make people desire to hold more money
b the value of money rises which will make people desire to hold less money
c the value of money falls which will make people desire to hold more money
d the value of money falls which will make people desire to hold less money
MSC: Analytical
52 When the money market is drawn with the value of money on the vertical axis, if the money supply rises
a the price level and the value of money rise
b the price level rises and the value of money falls
c the price level falls and the value of money rises
d the price level and the value of money fall
NAT: Analytic LOC: Monetary and fiscal policy TOP: Money market equilibriumMSC: Applicative
Trang 2253 When the money market is drawn with the value of money on the vertical axis, the value of money increases if
a either money demand or money supply shifts right
b either money demand or money supply shifts left
c money demand shifts right or money supply shifts left
d money demand shifts left or money supply shifts right
MSC: Analytical
54 When the money market is drawn with the value of money on the vertical axis, the price level increases if
a either money demand or money supply shifts right
b either money demand or money supply shifts left
c money demand shifts right or money supply shifts left
d money demand shifts left or money supply shifts right
MSC: Applicative
55 When the money market is drawn with the value of money on the vertical axis, the price level decreases if
a either money demand or money supply shifts right
b either money demand or money supply shifts left
c money demand shifts right or money supply shifts left
d money demand shifts left or money supply shifts right
MSC: Applicative
56 When the money market is drawn with the value of money on the vertical axis, the price level increases if
a money demand shifts right and decreases if money supply shifts right
b money demand shifts right and decreases if money supply shifts left
c money demand shifts left and decreases if money supply shifts right
d money demand shifts left and decreases if money supply shifts left
MSC: Applicative
57 Open-market purchases by the Fed make the money supply
a increase, which makes the value of money increase
b increase, which makes the value of money decrease
c decrease, which makes the value of money decrease
d decrease, which makes the value of money increase
MSC: Applicative
58 Consider the money market drawn with the value of money on the vertical axis If money demand is unchanged and the price level rises, then
a the money supply must have increased, perhaps because the Fed bought bonds
b the money supply must have increased, perhaps because the Fed sold bonds
c the money supply must have decreased, perhaps because the Fed bought bonds
d the money supply must have decreased, perhaps because the Fed sold bonds
MSC: Analytical
Trang 2359 In the fourteenth century, the Western African Emperor Kankan Musa traveled to Cairo where he gave away much gold, which was in use as a medium of exchange We would predict that this increase in gold
a raised both the price level and the value of gold in Cairo
b raised the price level, but decreased the value of gold in Cairo
c lowered the price level, but increased the value of gold in Cairo
d lowered both the price level and the value of gold in Cairo
MSC: Applicative
60 In the 1970s, in response to recessions caused by an increase in the price of oil, the central banks in many countries increased their money supplies The central banks might have done this by
a selling bonds on the open market, which would have raised the value of money
b purchasing bonds on the open market, which would have raised the value of money
c selling bonds on the open market, which would have raised the value of money
d purchasing bonds on the open market, which would have lowered the value of money
MSC: Applicative
61 When the money market is drawn with the value of money on the vertical axis, an increase in the money supply creates an excess
a supply of money, causing people to spend more
b supply of money, causing people to spend less
c demand for money, causing people to spend more
d demand for money, causing people to spend less
MSC: Analytical
62 A decrease in the money supply creates an excess
a supply of money that is eliminated by rising prices
b supply of money that is eliminated by falling prices
c demand for money that is eliminated by rising prices
d demand for money that is eliminated by falling prices
MSC: Analytical
63 Suppose there is a surplus in the money market
a This could have been created by an increase in the money supply The value of money will rise
b This could have been created by an increase in the money supply The value of money will fall
c This could have been created by a decrease in the money supply The value of money will rise
d This could have been created by a decrease in the money supply The value of money will fall
MSC: Analytical
64 The price level falls This might be because the Federal Reserve
a bought bonds which raised the money supply
b bought bonds which reduced the money supply
c sold bonds which raised the money supply
d sold bonds which reduced the money supply
NAT: Analytic LOC: Monetary and fiscal policy TOP: Money market equilibriumMSC: Applicative
Trang 24Figure 30-1
65 Refer to Figure 30-1 If the money supply is MS2 and the value of money is 2, then
a the value of money is lower than its equilibrium level
b the price level is higher than its equilibrium level
c the quantity of money demanded is greater than the quantity of money supplied
d the quantity of money supplied is greater than the quantity of money demanded
MSC: Analytical
66 Refer to Figure 30-1 If the money supply is MS2 and the value of money is 2, then there is an excess
a demand for money that is represented by the distance between points A and C
b demand for money that is represented by the distance between points A and B
c supply of money that is represented by the distance between points A and C
d supply of money that is represented by the distance between points A and B
MSC: Analytical
67 Refer to Figure 30-1 When the money supply curve shifts from MS1 to MS2,
a the demand for goods and services decreases
b the economy's ability to produce goods and services increases
c the equilibrium price level increases
d the equilibrium value of money increases
MSC: Applicative
68 Refer to Figure 30-1 When the money supply curve shifts from MS1 to MS2,
a the equilibrium value of money decreases
b the equilibrium price level decreases
c the supply of money has decreased
d the demand for goods and services will decrease
MSC: Applicative
Trang 2569 Refer to Figure 30-1 If the current money supply is MS1, then
a there is no excess supply or excess demand if the value of money is 2
b the equilibrium is at point C
c there is an excess supply of money if the value of money is 1
d None of the above is correct
MSC: Applicative
Figure 30-2 On the graph, MS represents the money supply and MD represents money demand The usual
quantities are measured along the axes
MDMDMS
1 2
70 Refer to Figure 30-2 What quantity is measured along the horizontal axis?
a the price level
b the real interest rate
c the value of money
d the quantity of money
MSC: Interpretive
71 Refer to Figure 30-2 If the relevant money-demand curve is the one labeled MD1, then the equilibrium value of money is
a 0.5 and the equilibrium price level is 2
b 2 and the equilibrium price level is 0.5
c 0.5 and the equilibrium price level cannot be determined from the graph
d 2 and the equilibrium price level cannot be determined from the graph
MSC: Applicative
72 Refer to Figure 30-2 If the relevant money-demand curve is the one labeled MD1, then
a when the money market is in equilibrium, one dollar purchases one-half of a basket of goods and services
b when the money market is in equilibrium, one unit of goods and services sells for 2 dollars
c there is an excess demand for money if the value of money in terms of goods and services is 0.375
d All of the above are correct
MSC: Applicative
Trang 2673 Refer to Figure 30-2 Which of the following events could explain a shift of the money-demand
curve from MD1 to MD2?
a an increase in the value of money
b a decrease in the price level
c an open-market purchase of bonds by the Federal Reserve
d None of the above is correct
MSC: Applicative
74 Refer to Figure 30-2 Suppose the relevant money-demand curve is the one labeled MD1; also suppose the velocity of money is 3 If the money market is in equilibrium, then the economy’s real GDP amounts to
a 5,000
b 7,500
c 10,000
d 15,000
NAT: Analytic LOC: The role of money
TOP: Velocity of money | Real GDP MSC: Applicative
75 Refer to Figure 30-2 Suppose the relevant money-demand curve is the one labeled MD1; also suppose the economy’s real GDP is 30,000 for the year If the money market is in equilibrium, then how many times per year is the typical dollar bill used to pay for a newly produced good or service?
a 4
b 6
c 8
d 12
MSC: Applicative
76 Refer to Figure 30-2 At the end of 2007 the relevant money-demand curve was the one labeled
MD2 At the end of 2008 the relevant money-demand curve was the one labeled MD1 Assuming the economy is always in equilibrium, what was the economy’s approximate inflation rate for 2008?
a -43 percent
b -57 percent
c 57 percent
d 75 percent
MSC: Applicative
Trang 27Figure 30-3 On the graph, MS represents the money supply and MD represents money demand The usual
quantities are measured along the axes
MDMS
77 Refer to Figure 30-3 What quantity is measured along the vertical axis?
a the price level
b the velocity of money
c the value of money
d the quantity of money
MSC: Interpretive
78 Refer to Figure 30-3 If the relevant money-supply curve is the one labeled MS1, then the equilibrium price level is
a 0.5 and the equilibrium value of money is 2
b 2 and the equilibrium value of money is 0.5
c 0.5 and the equilibrium value of money cannot be determined from the graph
d 2 and the equilibrium value of money cannot be determined from the graph
MSC: Applicative
79 Refer to Figure 30-3 If the relevant money-supply curve is the one labeled MS2, then
a when the money market is in equilibrium, one dollar purchases about one-third of a basket of goodsand services
b when the money market is in equilibrium, one unit of goods and services sells for 33 cents
c there is an excess demand for money if the value of money in terms of goods and services is 0.5
d All of the above are correct
MSC: Applicative
Trang 2880 Refer to Figure 30-3 Which of the following events could explain a shift of the money-supply
curve from MS1 to MS2?
a an increase in the value of money
b a decrease in the price level
c an open-market purchase of bonds by the Federal Reserve
d None of the above is correct
MSC: Applicative
81 Refer to Figure 30-3 Suppose the relevant money-supply curve is the one labeled MS2; also suppose the economy’s real GDP is 45,000 for the year If the money market is in equilibrium, then the velocity of money is approximately
a 4.5
b 6.0
c 9.0
d 12.0
MSC: Applicative
82 Refer to Figure 30-3 At the end of 2007 the relevant money-supply curve was the one labeled
MS1 At the end of 2008 the relevant money-supply curve was the one labeled MS2 Assuming the economy is always in equilibrium, what was the economy’s approximate inflation rate for 2008?
a -33 percent
b 17 percent
c 50 percent
d 67 percent
MSC: Definitional
85 On a given morning, Franco sold 40 pairs of shoes for a total of $80 at his shoe store
a The $80 is a real variable The quantity of shoes is a nominal variable
b The $80 is a nominal variable The quantity of shoes is a real variable
c Both the $80 and the quantity of shoes are nominal variables
d Both the $80 and the quantity of shoes are real variables
NAT: Analytic LOC: The role of money
TOP: Nominal variables | Real variables MSC: Definitional