宏观经济学 第四版 英文 (布兰查德 著) 清华大学出版社 课后答案 0页

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ANSWERSANSWERSTOTOTOEND-OF-CHAPTEREND-OF-CHAPTEREND-OF-CHAPTERPROBLEMSPROBLEMSCHAPTERCHAPTER11QuickQuickCheckCheck1.a.True.b.True.c.True/Uncertain.Averagegrowthislowersince1973.However,sincethemid-1990s,outputperworkerhasgrowthataboutthepre-1973rate.It"stoosoontotellwhetherthismarksareturntopre-1973growthratesorsimplyafewluckyyears.d.True.e.False.f.False.2.a.1960-20002001-2002khdaw.comUS3.5%0.9%EU3.1%1.6%Japan5.5%-0.9%b.Probablyclosertolong-runaverage,becauseaveragesovershorttimeperiodsreflectbusinesscycles.However,JapanwasgrowingexceptionallyfastintheearlypostwarperiodasitcaughtuptotheUnitedStates.EvenifJapanrecoversfromitscurrentslumpoverthenextdecade,itmaynotresumegrowthashighasitspreviousaverage.3.a.Lowunemploymentmightleadtoanincreaseininflation.b.Althoughmeasurementerrormaycontributetothemeasuredslowdowningrowth,thereareotherrelevantissues,includingtheproductivityofnewresearchandtheaccumulation课后答案网ofnewcapital.c.Althoughlabormarketrigiditiesmaybeimportant,itisalsoimportanttoconsiderthattheserigiditiesmaynotbeexcessive,andthathighunemploymentmayarisefromflawedmacroeconomicpolicies.www.hackshp.cnd.AlthoughpoorregulationofthefinancialsystemmaybecontributingtothelengthofJapan"sslump,mosteconomistsbelievethatthecollapseinJapaneseassetpricestriggeredtheeconomicdownturn.Moreover,tighteningregulationwouldlikelyinvolvemorepainintheshortrunsincesomebanksandfirmswouldbeforcedtoclose.e.AlthoughtheEurowillremoveobstaclestofreetradebetweenEuropeancountries,eachcountrywillbeforcedtogiveupitsownmonetarypolicy.DigDigDeeperDeeper4.Discussionquestion.5.a.10years:(1.01)10=1.10or10%higher;20years:22%higher;50years:64%higherb.29%;67%;261%higherkhdaw.com131若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com c.Takeoutputperworkerasameasureofthestandardofliving.10years:1.29/1.1=1.17,sothestandardoflivingwouldbeabout17%higher;20years:37%higher;50years:120%higherd.No.Laborproductivitygrowthfluctuatesalotfromyeartoyear.Thelastfewyearsmayrepresentgoodluck.Itistoosoontotellwhethertherehasbeenachangeinthetrendobservedsince1973.6.9.9(1.03)t=1.1(1.08)t9=(1.049)tt=ln(9)/ln(1.049)≈46yrsExploreExploreFurtherFurther7.a-c.AsofJune2002,therehavebeen8recessions.Thenumbersareseasonally-adjustedannualpercentagegrowthratesofGDPinchained1996dollars.1949:1-5.51974:3-4.4khdaw.com1949:2-1.11974:4-2.21975:1-5.01953:3-2.51953:4-6.31980:2-7.91954:1-2.01980:3-0.61957:4-4.11981:4-4.61958:1-10.31982:1-6.51969:4-7.91990:3-0.71970:1-0.61990:4-3.2课后答案网1991:1-2.0d.No.Growthratesfor2001:2001:11.3%2001:20.3%2001:3-1.3%2001:4www.hackshp.cn1.7%8.a-b.%pointincreaseinunemploymentrateforthe8recessions19491.91974-753.11953-543.119800.61957-582.21981-821.11969-700.71990-911.3Theunemploymentrateincreasedby1.4percentagepointsbetweenJanuary2001andJanuary2002.CHAPTERCHAPTER22QuickQuickCheckCheck1.a.False.khdaw.com132若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com b.Uncertain:realornominalGDP.c.True.d.True.e.False.TheleveloftheCPImeansnothing.Itsrateofchangetellsusaboutinflation.f.Uncertain.Whichindexisbetterdependsonwhatwearetryingtomeasure—inflationfacedbyconsumersorbytheeconomyasawhole.2.a.+$100;PersonalConsumptionExpendituresb.nochange:intermediategoodc.+$200million;GrossPrivateDomesticFixedInvestmentd.+$200million;NetExportse.nochange:thejetwasalreadycountedwhenitwasproduced,i.e.,presumablywhenkhdaw.comDelta(orsomeotherairline)boughtitnewasaninvestment.3.a.$1,000,000thevalueofthesilvernecklaces.b.1stStage:$300,000.2ndStage:$1,000,00-$300,000=$700,000.GDP:$300,000+$700,000=$1,000,000.c.Wages:$200,000+$250,000=$450,000.Profits:($300,000-$200,000)+($1,000,000-$250,000-300,000)=$100,000+$450,000=$550,000.GDP:$450,000+$550,000=$1,000,000.4.a.2001GDP:10*$2,000+4*$1,000+1000*$1=$25,0002002GDP:12*$3,000+6*$500+1000*$1=$40,000课后答案网NominalGDPhasincreasedby60%.b.2001real(2001)GDP:$25,0002002real(2001)GDP:12*$2,000+6*$1,000+1000*$1=$31,000Real(2001)GDPhasincreasedwww.hackshp.cnby24%.c.2001real(2002)GDP:10*$3,000+4*$500+1,000*$1=$33,0002002real(2002)GDP:$40,000.Real(20021)GDPhasincreasedby21.2%.d.TheanswersmeasurerealGDPgrowthindifferentunits.Neitheranswerisincorrect,justasmeasurementininchesisnotmoreorlesscorrectthanmeasurementincentimeters.5.a.2001baseyear:Deflator(2001)=1;Deflator(2002)=$40,000/$31,000=1.29Inflation=29%b.2001baseyear:Deflator(2001)=$25,000/$33,000=0.76;Deflator(2002)=1Inflation=(1-0.76)/0.76=.32=32%khdaw.com133若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com c.Analogousto4d.6.a.2001realGDP=10*$2,500+4*$750+1000*$1=$29,0002002realGDP=12*$2,500+6*$750+1000*$1=$35,500b.(35,500-29,000)/29,000=.224=22.4%c.Deflatorin2001=$25,000/$29,000=.86Deflatorin2002=$40,000/$35,500=1.13Inflation=(1.13-.86)/.86=.314=31.4%.d.Yes,seeappendixforfurtherdiscussion.DigDigDeeperDeeper7.a.Thequalityofaroutinecheckupimprovesovertime.CheckupsnowmayincludeEKGs,forexample.Medicalservicesareparticularlyaffectedbythisproblemduetoconstantkhdaw.comimprovementsinmedicaltechnology.b.Youneedtoknowhowthemarketvaluespregnancycheckupswithandwithoutultra-soundsinthatyear.c.Thisinformationisnotavailablesincealldoctorsadoptedthenewtechnologysimultaneously.Still,youcantellthatthequality-adjustedincreasewillbelowerthan20%.8.a.MeasuredGDPincreasesby$10+$12=$22.(Strictly,thisinvolvesmixingthefinalgoodsandincomeapproachestoGDP.Assumeherethatthe$12perhourofworkcreatesafinalgoodworth$12.)课后答案网b.TrueGDPshouldincreasebymuchlessthan$22becausebyworkingforanextrahour,youarenolongerproducingtheworkofcookingwithinthehouse.Sincecookingwithinthehouseisafinalservice,itshouldcountaspartofGDP.Unfortunately,itishardtomeasurethevalueofworkwithinthehome,whichiswhymeasuredGDPdoesnotincludeit.www.hackshp.cn9.Answerswillvarydependingonthewebsiteisaccessed.CHAPTERCHAPTER33QuickQuickCheckCheck1.a.True.b.False.Governmentspendingwithouttransferswas18%ofGDPwithouttransfers.c.False.Thepropensitytoconsumemustbelessthanoneforourmodeltobewelldefined.d.True.e.False.f.False.Theincreaseinoutputisonetimesthemultiplier.g.True.2.a.Y=160+0.6*(Y-100)+150+150khdaw.com134若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com Y=1000b.YD=Y-T=1000-100=900c.C=160+0.6*(900)=7003.a.Equilibriumoutputis1000.Totaldemand=C+I+G=700+150+150=1000.Totaldemandequalsproduction.Thatistheequilibriumconditionusedtosolveforoutput.b.Outputfallsby:40*multiplier=40/.4=100.Soequilibriumoutputisnow900.Totaldemand=C+I+G=160+0.6*(800)+150+110=900.Again,totaldemandequalsproduction.c.Privatesaving=Y-C-T=900-160-0.6*(800)-100=160.Publicsaving=T-G=-10.Nationalsaving(orinshort,saving)equalsprivatepluspublicsaving,or150.Nationalsavingequalsinvestment.Thisstatementismathematicallyequivalenttotheequilibriumconditionthattotaldemandequalsproduction.Thus,nationalsavingequalsinvestmentkhdaw.comisanalternativestatementoftheequilibriumcondition.DigDigDeeperDeeper4.a.Yincreasesby1/(1-c1)b.Ydecreasesbyc1/(1-c1)c.Theanswersdifferbecausespendingaffectsdemanddirectly,buttaxesaffectdemandthroughconsumption,andthepropensitytoconsumeislessthanone.d.ThechangeinYequals1/(1-c1)-c1/(1-c1)=1.BalancedbudgetchangesinGandTarenotmacroeconomicallyneutral.e.Thepropensity课后答案网toconsumehasnoeffectbecausethebalancedbudgettaxincreaseabortsthemultiplierprocess.YandTbothincreasebyonunit,sodisposableincome,andhenceconsumption,donotchange.5.a.Y=c0+c1YD+I+GimpliesY=[1/(1-cwww.hackshp.cn1+c1t1)]*[c0-c1t0+I+G]b.Themultiplier=1/(1-c1+c1t1)<1/(1-c1),sotheeconomyrespondslesstochangesinautonomousspendingwhent1ispositive.Afterapositivechangeinautonomousspending,theincreaseintotaltaxes(becauseoftheincreaseinincome)tendstolessentheincreaseinoutput.Afteranegativechangeinautonomousspending,thefallintotaltaxestendstolessenthedecreaseinoutput.c.Becauseoftheautomaticeffectoftaxesontheeconomy,theeconomyrespondslesstochangesinautonomousspendingthaninthecasewheretaxesareindependentofincome.Sooutputtendstovaryless,andfiscalpolicyiscalledanautomaticstabilizer.6.a.Y=[1/(1-c1+c1t1)]*[c0-c1t0+I+G]b.T=c1t0+t1*[1/(1-c1+c1t1)]*[c0-c1t0+I+G]c.BothYandTdecrease.khdaw.com135若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com d.IfGiscut,Ydecreasesevenmore.CHAPTERCHAPTER44QuickQuickCheckCheck1.a.False.b.False.c.True.d.True.e.False.f.False.g.True.2.a.i=0.05:Moneydemand=$18,000;Bonddemand=$32,000i=0.10:Moneydemand=$15,000;Bonddemand=$35,000b.khdaw.comMoneydemanddecreaseswhentheinterestrateincreasesbecausebonds,whichpayinterest,becomemoreattractive.Forthesamereason,bonddemandincreases.c.Thedemandformoneyfallsby50%.d.Thedemandformoneyfallsby50%.e.A1%increase(decrease)inincomeleadstoa1%increase(decrease)inmoneydemand.Thiseffectisindependentoftheinterestrate.3.a.i=100/$PB–1;i=33%;18%;5%when$PB=$75;$85;$95.b.Negative.课后答案网c.$PB=100/(1.08)≈$934.a.$20=MD=$100*(.25-i)i=5%www.hackshp.cnb.M=$100*(.25-.15)M=$105.a.BD=50,000-60,000(.35-i)Anincreaseintheinterestrateof10%increasesbonddemand$6,000.b.Anincreaseinwealthincreasesbonddemand,buthasnoeffectonmoneydemand,whichdependsonincome(aproxyfortransactionsdemand).c.Anincreaseinincomeincreasesmoneydemand,butdecreasesbonddemand,sinceweimplicitlyholdwealthconstant.d.Whenpeopleearnmoreincome,thisdoesnotchangetheirwealthrightaway.Thus,theyincreasetheirdemandformoneyanddecreasetheirdemandforbonds.khdaw.com136若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com DigDigDeeperDeeper6.a.Demandforcentralbankmoney=0.1*$Y*(.8-4i)b.$100b=0.1*$5,000b*(.8-4i)i=15%c.M=(1/.1)*$100b=$1,000bM=Mdattheinterestderivedinpart(b).d.IfHincreasesto$300b,theinterestratefallsto5%.e.Theinterestratefallsto5%,sincewhenHequals$300b,M=(1/.1)*$300b=$3,000b.7.Theratioofcurrencytototalmoney(theparametercinthetext)wouldrise,leadingtoafallinthemoneymultiplier.8.khdaw.coma.$16iswithdrawnoneachtriptothebank.b.Moneyholdings—dayone:$16;daytwo:$12;daythree:$8;dayfour:$4.Averagemoneyholdingsare($16+$12+$8+$4)/4=$10.c.$8dollarwithdrawals.d.Moneyholdingsof$8;$4;$8;$4.Averagemoneyholdingsare$6.e.$16dollarwithdrawals;moneyholdingsof$0;$0;$0;$16.f.Averagemoneyholdingsare$4.课后答案网g.Basedontheseanswers,ATMsandcreditcardshavereducedmoneydemand.9.a.velocity=1/(M/$Y)=1/L(i)b.Velocitymorethandoubledbetween1960and2000.www.hackshp.cnc.ATMSandcreditcardsreducedL(i)sovelocityincreased.CHAPTERCHAPTER55QuickQuickCheckCheck1.a.True.b.True.c.False.d.False.Thebalancedbudgetmultiplierispositive(itequalsone),sotheIScurveshiftsright.e.False.f.Uncertain.AnincreaseinGleadstoanincreaseinY(whichtendstoincreaseinvestment),butanincreaseintheinterestrate(whichtendskhdaw.comtoreduceinvestment).137若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com g.True.2.a.Y=[1/(1-c1)]*[c0-c1T+I+G]Themultiplieris1/(1-c1).b.Y=[1/(1-c1-b1)]*[c0-c1T+b0-b2i+G]Themultiplieris1/(1-c1-b1).Sincethemultiplierislargerthanthemultiplierinpart(a),theeffectofachangeinautonomousspendingisbiggerthaninpart(a).Anincreaseinautonomousspendingnowleadstoanincreaseininvestmentaswellasconsumption.c.Substitutingfortheinterestrateintheanswertopart(b):Y=[1/(1-c1-b1+b2d1/d2)]*[c0-c1T+b0+(b2*M/P)/d2+G]Themultiplieris1/(1-c1-b1+b2d1/d2).d.Themultiplierisgreater(less)thanthemultiplierinpart(a)if(b1-b2d1/d2)isgreater(less)thanzero.Themultiplierisbigifb1isbig,b2issmall,d1issmall,and/ord2isbig,i.e.,ifinvestmentisverysensitivetoY,investmentisnotverysensitivetoi,moneydemandiskhdaw.comnotverysensitivetoY,moneydemandisverysensitivetoi.3.TheIScurveshiftsleft.Outputandtheinterestratefall.Theeffectoninvestmentisambiguousbecausetheoutputandinterestrateeffectsworkinoppositedirections:thefallinoutputtendstoreduceinvestment,butthefallintheinterestratetendstoincreaseit.a.From3c:Y=[1/(1-c1-b1+b2d1/d2)]*[c0-c1T+b0+(b2*M/P)/d2+G]b.FromtheLMrelation:i=Y*d1/d2–(M/P)/d2Toobtaintheequilibriuminterestrate,substituteforequilibriumYfrompart(b).c.I=b0+b1Y-b2i=b0+(b1-b2d1/d2)*Y+b2(M/P)/d2Toobtainequilibriuminvestment,substituteforYfrompart(b).课后答案网d.Frompartsbandd,holdingM/Pconstant,Iincreasesby(b1-b2d1/d2)/(1-c1-b1+b2d1/d2),inresponsetoaone-unitincreaseinG.So,ifGdecreasesbyoneunit,investmentwillincreasewhenb15,repeatedsubstitutionimplies,πt=π5+(t-5)*4%.So,π10=28%;π15=48%.f.Inflationexpectations课后答案网willagainbeforeverwrong.Thisisunlikely.4.a.Ahighercostofproductionmeansahighermarkupofpricesoverwages.Themarkupreflectsallnonwagecomponentsofthepriceofagood.b.un=(0.08+0.1μ)/2;Thus,thenaturalrateofunemploymentincreasesfrom5%to6%asμincreasesfrom20%www.hackshp.cnto40%.DigDigDeeperDeeper5.a.πt=πt-1+0.1-2ut=πt-1+2%=2%πt=2%;πt+1=4%;πt+2=6%;πt+3=8%.b.πt=0.5πt+0.5πt-1+0.1-2utor,πt=πt-1+4%c.πt=4%;πt+1=8%;πt+2=12%;πt+3=16%d.Asindexationincreases,lowunemploymentleadstoalargerincreaseininflationovertime.khdaw.com143若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com 6.a.Yes.Theaveragerateofunemploymentwaslowerinthe1990s.Indeed,eventhoughtheunemploymentratewasatahistoricallow,inflationroseverylittle.b.Thenaturalrateofunemploymentprobablydecreased.ExploreExploreFurtherFurther7.a-c.Theequationthatseemstofitwellisπt–πt-1=6–μt,whichimpliesanaturalrateofapproximately6%.8.Therelationshipsimplyalowernaturalrateinthemorerecentperiod.CHAPTERCHAPTER99QuickQuickCheckCheck1.a.False.b.True.c.True.d.khdaw.comFalse.e.False.f.True.g.True.h.True.i.True.2.a.Theunemploymentratewillincreaseby1%peryearwheng=0.5%.Absentoutputgrowth,productivitygrowthtendstoincreasetheunemploymentrate,sincefewerworkersarerequiredtoproduceagivenquantityofgoods.Absentoutputgrowth,laborforcegrowthalsotendstoincreasetheunemploymentrate,sincemoreworkersarecompetingforthesamenumberofjobs.Therefore,unemploymentwillincreaseunlessthegrowthrateexceedsthesumofproductivitygrowthandlaborforcegrowth.课后答案网b.Weneedgrowthof4.25%peryearforeachofthenextfouryears.c.Okun’slawislikelytobecome:ut-ut-1=-0.4*(gyt-5%)3.a.un=5%www.hackshp.cnb.Assumetheeconomyhasbeenatthenaturalrateofunemploymentfortwoyears(thisyearandlastyear).Then,gyt=3%;gmt=gyt+πt=11%c.πugytgmtt-1:8%5%3%11%t:4%9%-7%-3%t+1:4%5%13%17%t+2:4%5%3%7%t+3:4%5%3%7%4.a.Seetextforfullanswer.Gradualismreducesneedforlargepolicyswings,witheffectsthataredifficulttopredict,butimmediatereductionmaybemorecredibleandencouragerapid,favorablechangesininflationexpectations.Ontheotherkhdaw.comhand,thestaggeringof144若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com wagedecisionssuggeststhat,ifthepolicyiscredible,agradualdisinflationistheoptionconsistentwithnochangeintheunemploymentrate.b.Notclear.BasedinBall"sevidence,probablyfastdisinflation,dependingonthefeatureslistedinpart(c).c.Someimportantfeatures:thedegreeofindexation,thenatureofthewage-settingprocess,andtheinitialrateofinflation.5.a.Inflationwillstartincreasing.b.Itshouldletunemploymentincreasetoitsnew,higher,naturalrate.DigDigDeeperDeeper6.a.sacrificeratio=1khdaw.comb.πt=10%;πt+1=8%;πt+2=6%;πt+3=4%;πt+4=2%c.5years;sacrificeratio=(10pointyearsofexcessunemployment)/(10percentagepointreductionininflation)=1d.πt=8.5%;πt+1=5.875%;πt+2=3.906%;πt+3=2.430%;πt+4=1.322%Lessthan5yearsarerequired.sacrificeratio:10/(12-1.322)=.934Thesacrificeratioislowerbecausepeoplearesomewhatforwardlookingandincorporatethetargetinflationrateintotheirexpectations.e.t+1.Theexpostsacrificeratiofromthisscenario=(1pointyearofexcessunemployment)/(10pointreductioninflation)课后答案网=0.1f.Takemeasurestoenhancecredibility.7.a.πt-πt-1=-(ut-.05)ut-ut-1=-.4*(gmt-πt-.03)b.Assumingwww.hackshp.cngm,t-1=13%,πt-1=10%,ut-1=5%,andgm=3%beginninginyeart:πut:7.1%7.9%t+1:3.1%9.1%t+2:-0.7%8.8%t+3:-3.2%7.5%t+4:-4.1%5.9%t+5:-3.5%4.4%t+6:-2.1%3.6%t+7:-0.5%3.4%t+8:0.8%3.7%t+9:1.5%4.3%t+10:1.6%4.9%khdaw.com145若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com c.Inflationdoesnotdeclinesmoothly.Intheearlyyears,thelargeunemploymentrates(relativetothenaturalrate)reduceinflationtonegativevalues.Sincemoneygrowth=3%=normaloutputgrowthinthisexample,negativeinflationdrivesrealmoneygrowth(andhenceoutputgrowth)abovethenormaloutputgrowthrate,andunemploymentfalls.Eventually,unemploymentfallsbelowthenaturalrate,inflationbeginstoincreaseagain.Thesecyclescontinue,withdecreasingamplitude.d.u=5%andπ=0%inthemediumrun.CHAPTERCHAPTER1010QuickQuickCheckCheck1.a.True.b.True.c.False.d.False.e.False.f.khdaw.comFalse.g.True.h.Uncertain.2.a.Example:France:(1.041)50*5,489=$40.9k.Germany:$48.4k;Japan:$82.9k;UK:$25.2k;U.S.:$35.3kb.2.3c.ForJapanandUK,yes;forFranceandGermany,no.3.a.$5,000课后答案网b.6000pesosc.$600d.$800www.hackshp.cne.MexicanstandardoflivingrelativetotheU.S.—exchangeratemethod:600/5000=.12;PPPmethod:800/5000=.164.a.Y=63b.Ydoubles.c.Yes.d.Y/N=(K/N)1/2e.K/N=4impliesY/N=2.K/N=8impliesY/N=2.83.Outputlessthandoubles.f.No.khdaw.com146若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com g.No.Inpart(f),wearelookingatwhathappenstooutputwhenweincreasecapitalonly,notcapitalandlaborinequalproportion.Therearedecreasingreturnstocapital.h.Yes.DigDigDeeperDeeper5.a.dlny/dt=.5dlnk/dtgrowthrateofoutput=1/2growthrateofcapitalb.4%c.K/Yincreases.d.No.Sincecapitalisgrowingfasterthanoutput,thesavingratewillhavetoincreasetomaintainthesamepace.Eventually,therequiredsavingwillexceedoutput.Capitalmustgrowfasterthanoutputbecausetherearedecreasingreturnstocapitalinthekhdaw.comproductionfunction.6.EventhoughtheUnitedStateswasmakingthemostimportanttechnicaladvances,theothercountriesweregrowingfasterbecausetheywereimportingtechnologiespreviouslydevelopedintheUnitedStates.Inotherwords,theywerereducingtheirtechnologicalgapwiththeUnitedStates.ExploreExploreFurtherFurther7.a-d.ConvergencefortheFrance,Belgium,andItaly;noconvergenceforthesecondsetofcountries.CHAPTERCHAPTER1111课后答案网QuickQuickCheckCheck1.a.Uncertain.Trueifsavingincludespublicandprivatesaving.Falseifsavingonlyincludesprivatesaving.b.False.c.Uncertain.d.Uncertain.www.hackshp.cne.True.(Outputpercapitaequalsoutputperworkertimestheparticipationrate,whichisatabout67%fortheUnitedStatestoday.So,roughly60%istrue.)f.False.g.False.h.Uncertain/false.Eveniftheendogenousgrowthmodelistrue,thegrowthratewon"tberelatedtothelevelofhumancapital.Thestatementcouldbetrueifhighereducationlevelsleadtoafasterrateoftechnologicalprogress.i.False.Evenifyouacceptthepremise(thateducationalinvestmentincreasesoutput,aswouldbeimpliedbytheMankiw,Romer,Weilpaper),itdoesnotnecessarilyfollowthatcountriesshouldincreaseeducationalsaving,sincefutureincreasesinoutputwillcomeattheexpenseofcurrentconsumption.Ofcourse,thereareotherargumentsforsubsidizingeducation,particularlyforlow-incomehouseholds.2.No.(1)TheJapaneserateofgrowthisnotsohighanymore.(2)IftheJapanesesavingratehaskhdaw.com147若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com alwaysbeenhigh,thenthiscannotexplainthedifferencebetweentherateofgrowthinJapanandtheUnitedStatesinthelast40or50years.(3)IftheJapanesesavingratehasbeenhigherthanitusedtobe,thenthiscanexplainsomeofthehighJapanesegrowth.ThecontributionofhighsavingtogrowthinJapanshould,however,cometoanend.3.Afteradecade:highergrowthrate.Afterfivedecades:growthratebacktonormal,higherlevelofoutputperworker.DigDigDeeperDeeper4.a.Highersaving.Higheroutputperworkerb.Sameoutputperworker.Higheroutputpercapita.5.a.K/N=(s/(2δ))2;Y/N=s/(4δ)b.C/N=(1-s)Y/N=s(1-s)/(4δ)c-e.khdaw.comY/Nincreaseswiths;C/Nincreasesuntils=.5,thendecreases.6.a.Yes.b.Yes.c.Yes.d.Y/N=(K/N)1/3e.Insteadystate,sf(K/N)=δK/N,which,giventheproductionfunctioninpart(d),implies:K/N=(s/δ)3/2课后答案网f.Y/N=(s/δ)1/2g.Y/N=2h.Y/N=21/2www.hackshp.cn7a.Substitutingfrom6e:K/N=1b.Substitutingfrom6f:Y/N=1c.K/N=.35;Y/N=.71d.Usingequation(11.3),theevolutionofK/Nis:0.9,0.82,0.75.TheevolutionofY/Nis:0.97,0.93,0.91khdaw.com148若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com CHAPTERCHAPTER1212QuickQuickCheckCheck1.a.True.b.True.c.False.d.True.e.False.f.True.g.Uncertain.h.False.i.False.2.a.MosttechnologicalprogressseemstocomefromR&Dactivities.SeediscussiononfertilityandappropriabilityinChapter12.2.khdaw.comb.Lowergrowthinpoorercountries.Highergrowthinrichcountries.c.IncreaseinR&Dandinoutputgrowth.d.Adecreaseinthefertilityofappliedresearch;a(small)decreaseingrowth.e.Adecreaseintheappropriabilityofdrugresearch.Adropinthedevelopmentofnewdrugs.Lowertechnologicalprogressandlowergrowth.3.Ashifttoafullyfundedsystemshouldincreaseoutputperworkerinthelongrun.Itshouldhavenoeffectonthelongrungrowthrateofoutputperworker.4.Seediscussion课后答案网inChapter12.2.DigDigDeeperDeeper5.a.Bothleadtoaninitialdecreaseingrowth.b.Onlythefirstleadstoapermanentdecreaseingrowth.6.a.Year1:www.hackshp.cn3000;Year2:3960b.RealGDP=3300;growthrateofrealGDP=10%c.20%c.RealGDP/Worker=30inbothyears;laborproductivitygrowthiszero.e.Using$13asthepriceofbankingservicesinYear2:realGDP=3990;outputgrowth=33%.f.-0.8%g.Propermeasurementimpliesrealgdp/worker=36.3inyear2.Laborproductivitygrowthis21%.khdaw.com149若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com h.True,assumingthereisprogressinthebankingservicessector.7.a.(K/(AN))*=(s/(δ+g21/2A+gN))=1;(Y/(AN))*=(1);gY/(AN)=0;gY/N=4%;gY=6%b.(K/(AN))=(4/5)2;(Y/(AN))*=(4/5);gY/(AN)=0;gY/N=8%;gY=10%c.(K/(AN))=(4/5)2;(Y/(AN))*=(4/5);gY/(AN)=0;gY/N=4%;gY=10%Peoplearebetteroffincasea.Givenanysetofinitialvalues,theleveloftechnologyisthesameincasesaandc,butthelevelofcapitalpereffectiveworkerishigherateverypointintimeincasea.Thus,sinceY/N=A*(Y/(AN))=A*(K/(AN))1/2,outputperworkerisalwayshigherincasea.8.a.ProbablyaffectsA.Thinkofclimate.b.AffectsH.c.AffectsA.StrongprotectiontendstoencouragemoreR&Dbutalsotolimitdiffusionofkhdaw.comtechnology.d.MayaffectAthroughdiffusion.e.MayaffectK,H,andA.Lowertaxratesincreasetheafter-taxreturnoninvestment,andthustendtoleadtomoreaccumulationofKandHandmoreR&Dspending.f.IfweinterpretKasprivatecapital,thaninfrastructureaffectsA(e.g.,bettertransportationnetworksmaymaketheeconomymoreproductivebyreducingcongestiontime).g.Assumingnotechnologicalprogress,lowerpopulationgrowthimpliesahighersteadystatelevelofoutputperworker.Lowerpopulationgrowthleads课后答案网tohighercapitalperworker.Ifthereistechnologicalprogress,thereisnosteady-statelevelofoutputperworker.Inthiscase,however,lowerpopulationgrowthimpliesthatoutputperworkerwillbehigherateverypointintime,foranygivenpathoftechnology.Seetheanswertoproblem7c.ExploreExploreFurtherFurtherwww.hackshp.cn9.a-f.Thereisaslowdowningrowthandtherateoftechnologicalprogressinthemodernperiod.Japan’sgrowthrateoftechnologicalprogressishigherbecauseitiscatchinguptotheU.S.leveloftechnology.Notallofthedifferenceingrowthratesofoutputperworkerisattributabletothedifferenceinratesoftechnologicalprogress.Abigpartisattributabletothedifferenceinratesofgrowthofcapitalperworker.CHAPTERCHAPTER1313QuickQuickCheckCheck1.a.False.b.False.c.True.d.True.e.True.khdaw.com150若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com f.True.g.False.h.True.2.a.u=1-(1/(1+μ))(A/Ae)b.u=1-(1/(1+μ))=4.8%c.No.Sincewagesadjusttoexpectedproductivity,anincreaseinproductivityeventuallyleadstoequiproportionalincreasesintherealwageimpliedbywagesettingandtherealwageimpliedbypricesetting,attheoriginalnaturalrateofunemployment.Thus,equilibriumcanbemaintainedwithoutanychangeinthenaturalrateofunemployment.3.Discussionquestion.4.a.Reducethegap,ifthisleadstoanincreaseintherelativesupplyofskilledworkers.khdaw.comb.Reducethegap,sinceitleadstoadecreaseintherelativesupplyofunskilledworkers.c.Reducethegap,ifitleadstoanincreaseintherelativesupplyofskilledworkers.d.Increasethegap,ifU.S.firmshireunskilledworkersinCentralAmerica,sinceitreducestherelativedemandforU.S.unskilledworkers.5.a.Textilesproductionismovingtolowwagecountries.b.Possiblydemographicchanges,increasedavailabilityofchildcareoutsidethehome,declineinlaborsupplyforthesepositions.c.Technologicalprogress.课后答案网6.ConsideranincreaseinthelevelofAintheAD-ASdiagram.Combinethewage-settingandprice-settingequationsintoanASequation:P=Pe(1+μ)(Ae/A)F(1-Y/(AL),z).www.hackshp.cnAnincreaseinAhastwoeffects:i.TotheextentthatAelagsbehindA,Ae/Afalls.Thisistheeffectthattendstoreducetheactualandnaturalratesofunemploymentforatime.ii.ForagivenlevelofY,anincreaseinAreducesY/A,increasesu,reducesW(throughtheFfunction),andreducesP.Thisistheeffectthattendstoincreasetheactualrateofunemploymentintheshortrun.Theeffectsin(i)and(ii)bothshifttheAScurvedown,sooutputincreasesintheshortrun.Theeffectonshort-rununemploymentdependsontherelativestrengthoftheeffectsin(i)and(ii).DigDigDeeperDeeper7.Discussionquestion.khdaw.com151若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com 8a.P=Pe(1+μ)(Ae/A)(Y/L)(1/A)b.ASshiftsdown.GivenAe/A=1,anincreaseinAimpliesafallinP,givenY.ThisoccursbecauseforagivenlevelofY,unemploymentishigher,sowagesarelowerandso,inturn,isthepricelevel.c.Thereisnowanadditionaleffect,afallinAe/A.Ineffect,workersdonotreceiveasmuchofanincreaseinwagesaswarrantedbytheincreaseinproductivity.Comparedtopart(b),nominalwagesarelower,leadingtoalowervalueofPgivenY.CHAPTERCHAPTER1414QuickQuickCheckCheck1.a.True.b.True.c.True.d.False.e.khdaw.comTrue.f.False.g.True.h.True.Thenominalinterestrateisalwayspositive.i.False.Therealinterestratecanbenegative.2.a.Real.Nominalprofitsarelikelytomovewithinflation;realprofitsareeasiertoforecast.b.Nominal.Thepaymentsarenominal.c.Nominal.Ifleasepaymentsareinnominalterms,asistypical.3.a.Exact:r=(1+.04)/(1+.02)-1课后答案网=1.96%;Approximation:r=.04-.02=2%b.3.60%;4%c.5.48%;8%4.a.No.Otherwise,nobodywouldholdbonds.Moneywouldbemoreappealing:itpaysatwww.hackshp.cnleastazeronominalinterestrateandcanbeusedfortransactions.b.Yes.Therealinterestratewillbenegativeifexpectedinflationexceedsthenominalinterestrate.Evenso,therealinterestrateonbonds(whichpaynominalinterest)willexceedtherealinterestrateonmoney(whichdoesnotpaynominalinterest)bythenominalinterestrate.c.Anegativerealinterestratemakesborrowingveryattractiveandleadstoalargedemandforinvestment.d.Answerswillvary.5.a.Thediscountrateistheinterestrate.SoEPDVare(i)$2,000*(1-.25)undereitherinterestrateand(ii)(1-.2)*$2,000undereitherinterestrate.khdaw.com152若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com b.Theinterestratedoesnotenterthecalculation.Hence,youprefer(ii)to(i)since20%<25%.Notethattheanswertopart(a)doesnotimplythatsavingwillnotaccumulate.Byretirement,theinitialinvestmentwillhavegrownbyafactorof(1+i)40innominaltermsand(1+r)40inrealterms.Aslongasrispositive,thepurchasingpoweroftheinitialinvestmentwillgrow.Inaddition,thissimpleexampleomitsanimportantreal-worldfeatureofretirementsavings:thetax-freeaccrualofinterest.Asaresultofthisfeature,theeffectiveinterestrateonretirementsavingismuchhigherthantheeffective(after-tax)interestrateonordinarysaving.6.a.$1000b.Sincethefirstpaymentoccursattheendoftheyear,$V=$z[(1+i)n-(1+i)]/[i*(1+i)n].khdaw.com10years:$575.90;20years:$836.49;30years:$936.96;60years:$996.39c.i=2%:consol$5000;10years:$816.22;20years:$1567.85;30years:$2184.44;60years:$3445.61i=5%:consol$2000;10years:$710.78;20years:$1208.53;30years:$1514.11;60years:$1887.587.a.Inthemediumrun,changesininflationarereflectedoneforoneinchangesinthenominalinterestrate.Inotherwords,inthemediumrun,changesininflationhavenoeffectontherealinterestrate.b.Support.课后答案网c.Thelineshouldnotgothroughtheorigin.Therealinterestrateispositive.d.No.Evenifmonetarypolicydoesnotaffectoutputortherealinterestrateinthemediumrun,itcanbeusedwww.hackshp.cnintheshortrun.DigDigDeeperDeeper8.a.TheISshiftsright.Atthesamenominalinterestrate,therealinterestrateislower,sooutputishigher.b.TheLMcurvedoesnotshift.Moneydemanddependsonthenominalinterestrate,nottherealinterestrate.c.Outputincreases.ThenominalinterestrateishigherthaninFigure14-5.Whetherthenominalinterestrateislowerorhigherthanbeforetheincreaseinmoneygrowthisambiguous.Thinkingintermsofthemoneymarketequilibrium,theincreaseinthenominalmoneysupplytendstoreducethenominalinterestrate,buttheincreaseinnominalmoneydemand(becauseoftheincreaseinoutput)tendstoincreasethenominalinterestrate.khdaw.com153若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com d.OutputishigherthaninFigure14-5.ReasoningfromtheISrelation,therealinterestratemustbelower,sincenoexogenousvariablesintheISrelationhavechanged.(Inotherwords,whilethenominalinterestratemayincreaserelativetoFigure14-5,itincreasesbylessthantheincreaseinexpectedinflation.Sotherealinterestratedecreases.)CHAPTERCHAPTER1515QuickQuickCheckCheck1.a.False.b.True.c.True.d.False.e.True.f.True.g.False.h.Uncertain/False.2.a.khdaw.com1+i=($F/$P)1/ni=(1000/800)1/3-1=7.7%b.5.7%c.4.1%3.Theyieldisapproximatelytheaverageoftheshortterminterestratesoverthelifeofthebond.a.5%.b.5.25%课后答案网c.5.5%4.a.UnexpectedshiftdownoftheLMcurve.UnexpectedfallintheinterestrateandincreaseinY.Stockpricesincrease.b.Nochangeinstockprices.www.hackshp.cnc.Ambiguouseffectonstockprices.Unexpectedexpansionaryfiscalpolicymeanstheinterestrateishigherthanexpected(aftertheexpectedexpansionarymonetarypolicy)butsoisoutput.Theinterestrateeffecttendstoreducestockprices;theoutputeffecttoincreasethem.DigDigDeeperDeeper5.a.SeeChapter15.b.Initiallyaftertheincrease,theyieldcurvewillslopedownouttoone-yearmaturities,thenslopeup.Afteroneyear,theyieldcurvewillslopeup.Afterthreeyears,theyieldcurvewillbeflat.khdaw.com154若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com 6.a.Aninvertedyieldcurveimpliesthattheexpectedfutureinterestrateislowerthanthecurrentinterestrate.TheseexpectationscouldarisefromabeliefthattheIScurvewillshifttotheleftinthefuture(andoutputwillfall),saybecausefutureinvestmentisexpectedtofall.b.GiventheFishereffect,asteepyieldcurveprobablyimpliesthatfinancialmarketparticipantsbelievethatfutureinflationwillbesubstantiallyhigherthancurrentinflation.7.Letrbetherealinterestrate,gthegrowthrateofdividends,andxbetheriskpremium.Thepriceisgivenby:1000/(1+r+x)+1000(1+g)/(1+r+x)2+1000(1+g)2/(1+r+x)3...=[1000/(1+r+x)][1+(1+g)/(1+r+x)+(1+g)2/(1+r+x)2+...]=1,000/(r-g+x)a.$50,000;$20,000b.$10,000;$7692.31khdaw.comc.$16,666.67;$11,111.11d.Increase.Afallintheriskpremiumislikeafallintherealinterestrate.ExploreExploreFurtherFurther8.a.TheFedcanreducethegrowthrateofmoney.Thenominalinterestrateincreasesintheshortrun,butfallsinthemediumrun.b.Inflationwashighestinearly1980.The12-monthinflationratepeakedat14.6%inMarchandAprilof1980.d.Adecliningspreadimpliesthatfutureshort-terminterestratesareexpectedtodeclineinthefuture.Theone-yearT-billratewasincreasingthelate1970s,课后答案网butthespreadwasdeclining,somarketswerenotexpectingthetrendtocontinue.e.Therewasalargedeclineclosetoaonepercentagepointdeclineinthespread,whichisconsistentwithexpectationsoflowerinflationinthefuture.f.Theone-yearinterestratefell.www.hackshp.cng.Atthestartofthedisinflation,marketsexpectedthatfutureinterestrateswouldbelower,thuscredible.Duringtheratecutintherecession,spreadswentup,whichimpliesthatmarketswereexpectingtheanti-inflationarypolicytocontinuewithhighshortterminterestratesaftertherecession,asitdid.9.AnswerswilldependonwhentheWebsiteisaccessed.CHAPTERCHAPTER1616QuickQuickCheckCheck1.a.False.b.True.c.False.khdaw.com155若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com d.False.e.False.f.True.g.True.2.a..75*(1+1.05+1.052)*$40,000=$94,575b.$194,575c.$19,457.50d.by$2,000e.Benefitsimplyextraannualconsumptionof:0.6*(1.052)*$40,000*7/10=$18,5223.EPDVisΠ/(r+δ)=$18,000/(r+0.08)a.khdaw.comBuy.EPDV=$138,462>$100,000b.Break-even.EPDV=$100,000c.Donotbuy.EPDV=$78,260<$100,0004.a.$44,000*(1-.4)*36-$40,000*(1-.4)*38=$38,400b.$44,000*(1-.3)*36-$40,000*(1-.3)*38=$44,800DigDigDeeperDeeper5.a.EPDVoffuture课后答案网laborincome=$30;consumption=$10inallthreeperiods.b.young:-5;middleage:15;old:-10c.Totalsaving=n*(-5+15-10)=0d.0-5N+10N=www.hackshp.cn5Ne.young:5;middleage:12.5;old:12.5;cannotborrowagainstfutureincomewhenyoung.f.0+12.5N-12.5N=0g.0+0+12.5N=12.5Nh.Byallowingpeopletoborrowtoconsumewhenyoung,financialliberalizationmayleadtolessoverallaccumulationofcapital.ExploreExploreFurtherFurther6.a-d.Onaverage,consumptionaccountsforabout65%ofGDPandinvestmentforabout14%,soconsumptionismorethanfourtimesbiggerthaninvestment.Relativetoaveragechanges,movementsinconsumptionandinvestmentareofsimilarmagnitude,whichimpliesinvestmentismuchmorevolatilethanconsumption.khdaw.com156若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com CHAPTERCHAPTER1717QuickQuickCheckCheck1.a.True.b.False.c.False.d.True/Uncertain(Theycanrelyonforecastsbyothers,butsomebodyhastodoit.)e.False.f.True.g.False.2.a.Higherrealstockpricesincreaserealwealthdirectly,andthereforetendtoincreaseconsumption.Moreover,thehypeabouttheNewEconomy,combinedwithincreasingstockprices,mayhaveledtofavorableexpectationsaboutfuturelaborincome,whichwouldalsotendtoincreaseconsumption.b.Subsequentdeclinesinthestockmarketdecreasedwealthandmayhaveledconsumerstokhdaw.comrevise(downward)expectationsaboutfuturelaborincome,effectsthatwouldtendtoreduceconsumption.3.a.ISshiftsright.b.Theexpectedfuturerealinterestrateincreasesrelativetothecurrentrealinterestrate.Byitself,thisstatementimpliesnothingaboutthelevelofinterestrates.Theyieldcurvecouldgetsteeperevenifallrealinterestratesfellatallmaturities.Assuming,however,thatataminimumtheexpectedfuturerealinterestrateincreases,theISprobablyshiftsleft.Ifthecurrentrealinterestratedoesnotfall,thenISdefinitelyshiftsleft.Ifthecurrentrealinterestratedoesfall,thenISprobablyshiftsleft,becausetheeffectoftheexpectedfuturerealinterestrate(assumedtorise)isstrongerthantheeffectofthecurrent课后答案网realinterestrate.c.LMshiftsright.d.Theexpectedfuturerealinterestratedecreasesandexpectedfutureoutput(atleastforawhile)increases.ISshiftsright.www.hackshp.cne.WithinthecontextofIS-LM,withafixedcapitalstock,anincreaseinexpectedfuturetaxescausesIStoshiftleft.However,theincreaseinfuturetaxes(adeficitreductionprogram)willleadtolowerrealinterestratesandincreasedinvestmentinthemediumrunandhigheroutputinthelongrun.TheexpectedchangesintherealinterestrateandoutputtendtocausetheIScurvetoshiftright.TheneteffectontheIScurveisambiguous.Notethatthemodelofthetexthaslumpsumtaxes.Moregenerally,thetaxincreasemayincreasedistortionsintheeconomy.Theseeffectstendtoreduceoutput(orthegrowthrate).f.ISshiftsleft.4.Rationalexpectationsmaybeunrealistic,butitdoesnotimplythateveryconsumerhasperfectknowledgeoftheeconomy.Itimpliesthatconsumersusethebestavailableinformation—models,data,andtechniques—toassessthefutureandmakedecisions.Moreover,theykhdaw.comdonot157若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com havetoworkouttheimplicationsofeconomicmodelsforthefuturebythemselves;theycanrelyonthepredictionsofexpertsontelevisionorinthenewspapers.Essentially,rationalexpectationsrulesoutsystematicmistakesonthepartofconsumers.Thus,althoughrationalexpectationsmaynotliterallybetrue,itseemsareasonablebenchmarkforpolicyanalysis.5.Theseanswersignoreanyeffectoncapitalaccumulationandoutputinthelongrun.a.Inthefuture,taxcutswillleadtoaboom.Thisleadstohigherexpectedoutput,lowerexpectedtaxes,butahigherexpectedinterestrateinthefuture.Theeffectoncurrentoutputisambiguous.b.ThismeansthattheFedwillincreasetheinterestrateinthefuture(shiftLMleft).Theexpectedinterestratewillincreasemore,butthereisstilltheeffectoflowerexpectedtaxesoncurrentconsumption.Theeffecttodayonoutputisstillambiguous,butmorelikelytobenegativethaninpart(a).c.Futureoutputwillbehigher,thefutureinterestratewillnotincrease,andfuturetaxeskhdaw.comwillbelower.ThecurrentIScurvedefinitelyshiftsright,andcurrentoutputincreases.DigDigDeeperDeeper6.a-b.Seethediscussioninthetext.c.ThegestureseemedtoindicatethattheFedsupporteddeficitreduction,andwouldbewillingtoconductexpansionarymonetarypolicyinthefuturetooffsetthedirectnegativeeffectsonoutputfromspendingcutsandtaxincreases.AbeliefthattheFedwouldbewillingtoactinthiswaywouldtendtoincreaseexpectedfutureoutput(relativetothecasewheretheFeddidnothing)andreduceexpectedfutureinterestrates.Bothoftheseeffectstendtoincreaseoutputintheshort-run.ExploreExploreFurtherFurther课后答案网7.a.TheyieldcurvegotflatterbetweenNovember1992andAugust1993,withverylittlechangeinshort-terminterestrates.Thissuggeststhattheexpectedfutureshort-terminterestratefell,i.e.,thattheFedwasexpectedtoadoptamoreexpansionarystance.b.Norecessionafter1993.ThisisconsistentwithexpectationsthattheFedwouldsupportthedeficitreductionwww.hackshp.cnwithrelativelyexpansionarypolicy.c.Yes.d.Highergrowthratesinthe1990sincreasedtaxrevenues.CHAPTERCHAPTER1818QuickQuickCheckCheck1.a.True.b.False.c.False.d.False.e.True.f.False.khdaw.com158若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com 2.DomesticDomesticCountryCountryCountryBalanceBalanceBalanceofofofPaymentsPayments($)CurrentAccountExports25Imports145(=100+45)TradeBalance-120(=25-145)InvestmentIncomeReceived0InvestmentIncomePaid15NetInvestmentIncome-15(=0-15)NetTransfersReceived-25CurrentAccountBalance-160(=-120-15-25)CapitalAccountIncreaseinForeignHoldingsofDomesticAssets80(=65+15)IncreaseinDomesticHoldingsofForeignAssets-50NetIncreaseinForeignHoldings130(=80-(-50))StatisticalDiscrepancy30(=160-130or=35-5)khdaw.comForeignForeignCountryCountryCountryBalanceBalanceofPaymentsPayments($)($)CurrentAccountExports145Imports25TradeBalance120InvestmentIncomeReceived15InvestmentIncomePaid0NetInvestmentIncome15NetTransfersReceived25CurrentAccountBalance160CapitalAccount课后答案网IncreaseinForeignHoldings-50IncreaseinDomesticHoldings80NetIncreaseinForeignHoldings-130StatisticalDiscrepancy-303.a.Thenominalreturnwww.hackshp.cnontheU.S.bondis10,000/(9615.38)–1=4%.ThenominalreturnontheGermanbondis5%.b.Uncoveredinterestparityimpliesthatthedollarisexpectedtoappreciateby1%.Thus,theexpectedexchangerateis.99*(.95)=0.9405$/Euro.c.Ifyouexpectthedollartodepreciateinstead,purchasetheGermanbondasyouexpectthereturn(in$)tobemorethan5%.d.TheEurodepreciatesby5.26%,sothetotalreturnontheGermanbond(in$)is5-5.26=-0.26%.InvestingintheU.S.bondwouldhaveproducedasure4%return.e.Theuncoveredinterestparityconditionisaboutequalityofexpectedreturns,notequalityofactualreturns.khdaw.com159若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com DigDigDeeperDeeper4.Currentaccountdeficitslookbad.Netcapitalinflowslookgood.Weknowfrombalanceofpaymentsaccounting,however,thatwecannothaveonewithouttheother.Theevidencedoesnotsupporteitherargument.ContrarytowhattheDemocratssaid,thetradedeficitwasduetoalargeoutputexpansionintheUnitedStates,whichledtoalargeincreaseinimports(seetheFocusBoxinChapter20),notprimarilytoalossofcompetitiveness.ContrarytowhatthePresidentsaid,thelargenetcapitalinflowswereneededtofinancethetradedeficit;theywerenotasignthatforeigninvestorswereeagertoinvestintheUnitedStates.5.a.SimplysubstituteFforEeinthederivationofuncoveredinterestparityinthetext.Wenolongerneedtousetheexpectedexchangerate,sinceweknowtheexchangerateatwhichEurosanddollarswillbeexchangedinthefuture.Theywillbeexchangedattheforwardprice,F.b.Theforwardrateconsistentwithcoveredinterestparityisthesameastheexpectedexchangerateconsistentwithuncoveredinterestparity.c.khdaw.comGolongorshortinU.S.bonds,dependingontheforwardexchangerate.d.Surprisesintheexchangeratenolongeraffectactualreturnsonyourinvestment.Allexchangerateexposurehasbeeneliminatedbytheforwardcontract.ExploreExploreFurtherFurther6.a.Theyenappreciatedformmid-1985tomid-1995,depreciateduntilmid-1998,appreciatedthroughtheendof1999,anddepreciatedthroughtheendof2001.Fromabroaderperspective,betweentheendof1984andtheendof2001,theyenappreciatedbyabout100%.Theyenreacheditsstrongestvalueagainstthedollarinmid-1995.b.Depreciationoftheyen.课后答案网c.Theyendepreciatedbetween1999and2001.ThisisprobablygoodforJapaneseexportsandoutput.7."U.S.AssetsAbroad"referstoforeignassetsacquiredbytheUnitedStates.Thesignconventionisthatanegativenumberimpliesacapitaloutflow(notanoutflowofassets),meaningU.S.acquisitionofforeignassets.Loosely,acapitaloutflowistheexchangeofhomecurrencyforwww.hackshp.cnforeignassets.Inthe1990s,theUnitedStatesacquiredasubstantialamountofforeignassets.However,thisisonlyonesideofthecapitalaccount.Capitalinflowsarerecordedinthecategory,"ForeignAssetsintheU.S."Inprinciple,thesumof"U.S.AssetsAbroad"and"ForeignAssetsintheU.S."(withthepropersignconventions)equalstheU.S.currentaccount.Inpractice,therearemeasurementerrors,summarizedinthecategory,"StatisticalDiscrepancy."GiventhattheUnitedStateshadasubstantialcurrentaccountdeficitinthe1990s(exceptduringthefirsthalfof1991),itreceived,onnet,capitalinflows,whichmeanstheinflowfrom"ForeignAssetsintheU.S."shouldhaveexceededtheoutflowfrom"U.S.AssetsAbroad"bytheamountoftheU.S.currentaccountdeficit.Inallquartersexcept1991:1and1995:4,measuredU.S.capitalinflowsexceededmeasuredU.S.capitaloutflows,althoughneverbyexactlytheamountoftheU.S.currentaccountdeficit.Insomequartersthestatisticaldiscrepancywaspositive;inothers,negative.khdaw.com160若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com CHAPTERCHAPTER1919QuickQuickCheckCheck1.a.False.b.Uncertain.c.False.d.False.e.True.f.True.g.True/Uncertain.Appreciationofthedollaralsoplayedarole.2.a.ε=EP*/P.Applyproposition8to(EP*)/Pandthenproposition7to(EP*).b.If∆P/P>∆P*/P*and∆E/E=0,then∆ε/ε<0,sotherealexchangerateisdecreasing(appreciatingfromthepointofviewofthedomesticcountry)overtime.GiventheMarshall-Lernercondition,thisimpliesnetexportsarefalling.Thepriceofdomesticgoodsisrisingfasterthanthepriceofforeigngoods,whiletheexchangerateisconstant.khdaw.comAsdomesticgoodsarebecomingmoreexpensivethanforeigngoods,consumersinbothcountriesshifttheirpurchasesawayfromgoodsinthehigh-inflationcountrytothelow-inflationone.3.a.TheshareofJapanesespendingonU.S.goodsrelativetoU.S.GDPis(0.1)(0.1)=1%.b.U.S.GDPfallsby2(.05)(.01)=0.1%.c.U.S.GDPfallsby2(.05)(.1)=1%.d.Thisisanoverstatement.ThenumbersaboveindicatedthatevenifU.S.exportsfallby5%,theeffectistoreducegrowthby1%.ThisissmallrelativetoGDP,butlargerelative课后答案网tonormalgrowth(ofaround3%).4.a.Initially,netexportsandoutputfall.b.Aftersixmonths,netexportsandoutputincrease.DigDigDeeperDeeperwww.hackshp.cn5.a.Y=C+I+G+X–Q=20+0.8*(Y-10)+G+0.3Y*-0.3YY=[1/(1-.8+.3)](12+G+0.3Y*)=2*(12+G+0.3Y*)=44+0.6Y*Themultiplieris2(=1/(1-.8+.3))whenforeignoutputisfixed.Theclosedeconomymultiplieris5(=1/.5).Itdiffersfromtheopeneconomymultiplierbecause,intheopeneconomy,onlysomeofanincreaseinautonomousdemandfallsondomesticgoods.b.Sincethecountriesareidentical,Y=Y*=110.Takingintoaccounttheendogeneityofforeignincome,themultiplierequals[1/(1-0.8-0.3*0.6+0.3)]=3.125.Themultiplierishigherthantheopeneconomymultiplierinpart(a)becauseittakesintoaccountthefactthatanincreaseindomesticincomeleadstoanincreaseinforeignincome(asaresultofanincreaseindomesticimportsofforeigngoods).Theincreaseinforeignincomeleadstoanincreaseindomesticexports.khdaw.com161若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com c.IfY=125,thenforeignoutputY*=44+0.6*125=119.UsingthesetwofactsandtheequationY=2(12+G+0.3Y*)yields:125=24+2G+0.6*(119).SolvingforGgivesG=14.8.Inthedomesticcountry,NX=0.3*(119)-0.3*(125)=-1.8;T-G=10-14.8=-4.8.Intheforeigncountry,NX*=1.8;T*-G*=0.d.IfY=Y*=125,thenwehave:125=24+2G+0.6*(125),whichimpliesG=G*=13.Inbothcountries,netexportsarezero,butthebudgetdeficithasincreasedby3.e.Inpart,fiscalcoordinationisdifficulttoachievebecauseofthebenefitsofdoingnothing,asindicatedfrompart(c).6.a.Ataxonforeigngoodsofrateτaffectsthepricepaidforimports.Insteadofε,itisnowequalto(1+τ)ε.ImportsaregivenbyQ((1+τ)ε,Y).Thepriceofexportsisunaffected,soexportsarestillgivenbyX(ε,Y*).b.Foragivenlevelofdomesticincome,thehigherpriceofforeigngoodstodomesticconsumersreducesimports,butdoesnotaffectexports,soNXincreases.Thisshiftsthekhdaw.comIScurvetotheright,increasingdomesticequilibriumincome.HigherdomesticincomeoffsetssomeoftheinitialincreaseinNX,buttheoveralleffectisstillfavorable.c.Thetaxhasoppositeeffectsintheforeigncountry,affectingtheirexportsnegatively,shiftingtheIScurvetotheleft,whichreducesequilibriumincome.d.EachshiftintheIScurvewillbereversed,buttheoverallvolumeoftrade,describedbyQ+Q*willfall.Ifagentssimplysubstitutedomesticgoodsforforeigngoods,outputwillremainthesame.7.Answerswillvary.CHAPTERCHAPTER2020课后答案网QuickQuickCheckCheck1.a.Uncertain.b.False/uncertain.False,aslongastheinterestrateeffectonNX(viatheexchangerate)isstrongenough.Ifthiseffectisverysmall,thenmonetarypolicywillhaveastrongereffectintheclosedeconomy,becausenoneoftheextraoutputinducedwww.hackshp.cnbyafallintheinterestratewillleakoutonimports.NotethatintheoriginalMundell-Flemingmodel,withi=i*,monetarypolicyisdefinitelymoreeffectiveintheopeneconomy,becausetheexpectedexchangeratewillincrease(depreciate),shiftingtheIScurveright.c.True.d.True.e.False.f.False.2.a.Afterthedevaluation,thefixedexchangerateiscredible,sotheinterestratewillequaltheforeigninterestrate.Assumingthefixedexchangeratewascrediblebeforethedevalution,thentheinterestratedoesnotchangeasaresultofthedevaluation.However,thedevaluationincreasesnetexportsbytheMarshall-Lernerconditionandincreasesoutput.khdaw.com162若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com b.Thedomesticinterestratemustriseabovetheforeignratebecausethereisanexpecteddevaluation.Asaresult,theincreaseinoutputislessthantheincreaseinpart(a).Indeed,outputcouldfalliftheexpecteddevaluationislargeenough(i.e.,thehomeinterestrateincreasesbyasufficientamount).3.a.MonetarypolicyisineffectiveintheFollowercountries.Thefixedexchangerateimpliesthatthedomesticinterestrateisfixed,giventheLeaderinterestrate.b.ItistruethattheLeadercountry’sexchangerateisessentiallyfixed,butitstilloperatesasifitwereinaflexibleexchangerateregime.Theleadercountryisfreetochangeinterestratesasitwishes,sincethefixedexchangerateisnotitstarget.Inotherwords,monetarypolicyiseffectivefortheLeadercountry.c.Followercountriesmustincreaseinterestratesaswell.Thisleadstoacontractioninoutput.IfFollowercountriesdidnothing,theircurrencieswoulddepreciate.4.a.ISshiftsleft,becausedomesticexportsfallgivenanyexchangerate(andhenceanyvaluekhdaw.comoftheinterestrate).Outputfalls.b.Eincreases,givenanyvalueofthehomeinterestrate,soISshiftsright.Theinterestparitylinealsoshiftsright.Asaresult,Eincreases,NXincreases,andYincreases.Thehomeinterestratealsoincreases,butbylessthantheforeigninterestrate.c.Theeffectsofamonetarycontractionabroadonhomeoutputareambiguous.Amonetarycontractionabroadreducesforeignoutputandincreasestheforeigninterestrate.Theoutputeffecttendstoreducehomeoutput(becausehomeexportstendtofall).Theinterestrateeffecttendstoincreasehomeoutput(becausethehomecurrencydepreciates,whichhasapositiveeffectonhomeNX).5.Underflexibleexchangerates,theproperpolicycombinesexpansionarymonetarypolicy(which课后答案网leadstodepreciation,buttoanincreaseinoutput)withcontractionaryfiscalpolicy(whichoffsetstheincreaseinoutputfrommonetarypolicy).Underfixedrates,devaluationcombinedwithfiscalcontractioncanachievethesameresult,assumingthedevaluationiscredible.6.Consumptionandinvestmentbothincrease.Theeffectonnetexportsisambiguous:higheroutputleadstolowernetexports,www.hackshp.cnbutdepreciationleadstohighernetexports.DigDigDeeperDeeper7.a.Outputshouldfall,thenominalinterestrateshouldincrease,andtheexchangerateshouldappreciate.b.Outputshouldincrease,thenominalinterestrateshouldincrease,andtheexchangerateshouldappreciate.c.Essentially,yes.CHAPTERCHAPTER2121QuickQuickCheckCheck1.a.Uncertain(theproblemwasnotthereturnbutthekhdaw.comparitychosen)163若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com b.True.c.Uncertain.d.True/uncertain.e.False.2.a.Anincreaseintheforeignpricelevelcausesarealdepreciation,whichleadstoanincreaseindemandandoutput.b.Anincreaseinexpectedinflationcausesadecreaseintherealinterestrate,whichleadstoanincreaseindemandandoutput.c.First,unequalinflationratesleadtoeffectsontherealexchangerate.Ifinflationishigh(andofsimilarmagnitude)athomeandabroad,thenthereislittleeffectontherealexchangerate,andtheeffectinpart(a)goesaway.Second,inthemediumrun,inflationhasnoeffectontherealinterestrate,sotheeffectinpart(b)goesaway.3.a.Intheshortrun,outputincreases,therealexchangeratedoesnotchange,andthenominalkhdaw.cominterestratedoesnotchange(itremainsequaltotheworldinterestrateunderfixedexchangerates.Inthemediumrun,outputreturnstoitsnaturallevel,therealexchangerateappreciates,andthenominalinterestrateremainsunchanged.b.Intheshortrun,consumptionandinvestmentincrease,butnetexportsfall.Inthemediumrun,consumptionandinvestmentreturnstotheiroriginallevels,sinceoutputreturnstoitsnaturallevelandtheinterestrateisunchanged.Netexportsfallbyanamountequaltotheincreaseingovernmentspending.c.Budgetdeficitsdoleadtotradedeficits,butnotmechanically.Changesinthebudgetdeficitleadtochangesinoutputandtherealexchangerate,bothofwhichaffectthetradedeficitdirectly.课后答案网4.a.10%=6%+expectednominaldepreciation,soexpectednominaldepreciation=4%peryear.b.10%-6%=(6%-3%)+expectedrealdepreciation,soexpectedrealdepreciation=1%peryear.www.hackshp.cnc.Youwouldpurchasethedomesticbondbecausetheforeignbondwillonlyyield6%andthereisalossonyourpositionintheforeigncurrency.DigDigDeeperDeeper5.a.ReunificationimpliesanexcessiveappreciationoftheEastGermancurrency.Itleadstoarecession.b.OutputremainslowuntilpriceshavedecreasedenoughrelativetoWestGermanpricessoastoreestablishtherightrealexchangerate.c.Pricesmustfall.Ifthereisnoproductivitygrowth,nominalwagesmustfall.6.AnincreaseintheperceivedprobabilityofdevaluationmakesBrazilianstocksmuchlessattractivethannon-Brazilianstocks.Financialinvestorsselloffkhdaw.comtheirholdingsandstockprices164若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com fall.TheyfalluntiltheexpectedreturninRealsislargeenoughtocompensatefortheexpecteddevaluationoftheReal.Afterthedevaluation,however,ifinvestorsdonotexpectfurtherdevaluations(anymorethantheydidbeforethecrisis),itisreasonableforstockpricestorecoversosharply.CHAPTERCHAPTER2222QuickQuickCheckCheck1.a.False.b.True.c.Uncertain.d.True.e.False.2.a.Short-termunemploymenthasmoreeffect.Thelong-termunemployedmaynotbesearchingandmaynotbeveryemployable.khdaw.comb.u=0.1/[(1.1)(1-0.5β)]c.Ifβ=0,0.4,0.8,thenaturalrate=9.1%,11.4%,15.2%.Thelong-termunemployedputlessdownwardpressureonwagesthantheshort-termunemployed.Thus,fromthewage-settingequation,foragivenaggregateunemploymentrate,anincreaseintheproportionoflong-termunemployedwouldtendtoincreasetherealwage.Sincetherealwageisfixedfromtheprice-settingequation,however,theaggregateunemploymentratemustincreasetooffsettheupwardpressureontherealwagefromtheincreaseintheshareoflong-termunemployed.Intuitively,iftheweightonthelong-termunemployedwerezeroinsteadof0.5,thenthewage-settingandprice-settingequationswoulddeterminethenaturalshort-termrateofunemployment.Additionallong-termunemployedwouldsimplyincreasetheaggregateunemploymentrate.Thesamekindofreasoningapplieshere,but课后答案网theeffectislessstrongbecausetheweightonlong-termunemployedinthewage-settingequationisnotzero.3.a.Higherunemploymentimplieslowerwagesgivenexpectedprices.Thisimplieslowerpricesgivenexpectedprices.Equivalently,itimplieslowerinflationgivenexpectedinflation,whichhereequalspastinflation.www.hackshp.cnb.π-πt-1=(μ+z)-αuSorequivalently:π-πt-1=(μ+z)-α(u-uL)c.Thecurvewillshifttotheright.Moreoverallunemploymentisneededtoachievethesamedecreaseininflation.d.Yes.IfdisinflationleadstoanincreaseinuL,disinflationwillbelessthanpredictedbythestandardrelation.4.SeediscussionintextandtheanswertoProblem5.DigDigDeeperDeeper5.a.DrawtheISandLMcurvessotheycrossclosetoi=1.Note,however,thattheLMcurvecannotcrossthehorizontalaxis.khdaw.com165若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com b.No.Sincethenominalinterestratecannotfallbelowzero,anincreaseinthecurrentmoneysupplycannotincreaseoutput.c.Iftheexpectednominalinterestratewerepositiveinthefirstplace,thenthecentralbankcanannouncethatitwilldecreaseit.Thiswilltendtoreducetheexpectedrealinterestrate,increasecurrentinvestment,andshiftthecurrentIScurvetotheright.d.Open.e.Yes.Intheabsenceofothereconomicnews,theyieldcurveshouldbecomelesssteepaftertheannouncementofthepolicy,ifpeoplebelievethatthecentralbankwillimplementthepolicy.CHAPTERCHAPTER2323QuickQuickCheckCheck1.a.khdaw.comTrue.b.False.c.False.d.False.e.False.f.False.2.a.Ifmoneygrowth=25%,50%,75%,seignorage=162.5,325,487.5b.Inthemediumrun,ifmoneygrowth=25%,50%,75%,seignorage=162.5,200,112.5.Thefallinrealmoneybalancesassociatedwithhigherongoinginflationreducesthepotentialforseignorage.Part(a)didnotallowforthiseffect.3.a.Woulddecreasetheeffectofinflation课后答案网onrealtaxrevenues.b.Woulddecreasetheeffectofinflationonrealtaxrevenues.c.Woulddecreasetheeffectofinflationonrealtaxrevenues,butwouldalsohaveothereffects.Theincometaxcantaxthewww.hackshp.cnrichatahigherratethanthepoor,butthesalestaxrateisthesameforrichandpoor.4.Theendtothecrisisdependsonshiftingthecompositionoftaxes.Workersarealreadypayinganinflationtax.Thecentralbankmustmakeacrediblecommitmentthatitwillnolongerautomaticallymonetizethegovernmentdebt.Althoughacurrencyboardwoulddothis,itisadrasticandperhapsunnecessarystep.Pricecontrolsmayhelp,butpricecontrolswithoutotherpolicychangesonlycausedistortionsandarearecipeforfailure.Arecessionisnotneeded,butitmayhappen.Althoughnominalrigiditiesarelessimportantduringhyperinflations—whichimpliesthatthesacrificeratioissmall—theissueofcredibilitykhdaw.com166若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com remains.Unlessfirmsandworkersbelieveinthestabilizationprogram,asevererecessionmaybetheresult.Theproblemhastwoparts:(i)thereisanongoingfiscaldeficitthatthegovernmentisunableorunwillingtofinancefromnonmonetarysourcesand(ii)thecentralbankiswillingtomonetizethedebt.Theorderinwhichtheseissuesareresolvedultimatelydependsonthepoliticalrealities.Thefiscalauthoritycouldeliminatethedeficits.Ifitdoesnotdoso,thecentralbankcouldcommitnottomonetizegovernmentdebt.However,thiscoulddrivethegovernmentintodefaultonitsbonds.DigDigDeeperDeeper5.max(0.9-∆M/M)(∆M/M)=45%.CHAPTERCHAPTER2424QuickQuickCheckCheck1.a.False.khdaw.comb.True/Uncertain.c.False.d.False.e.True.f.Uncertain.Itmaybewiseforagovernmenttocommitnottonegotiatewithhostagetakersasameanstodeterhijackings,evenrecognizingthatafterahijackinghastakenplace,thereisastrongincentivetonegotiate.However,thephrase“undernocircumstances”iscategorical.Theremaysomecircumstancesunderwhichagovernmentmightwishtoviolateitscommitment.Thisstatement,ofcourse,illustratesthedifficultyofprecommitment.Canagovernmentreallycommitnottonegotiate,nomatterwhatthecircumstances,evenifthesecircumstancesmaynothavebeenimaginedatthetimethecommitmentwasmade?g.False.课后答案网2.Answerswillvary.3.a.Ifyouthinkthatvoterscarealotaboutcurrentconditions,youmaywanttocomeintotheelectionswithlowinflationandlowunemployment.So,youmaywanttohavehigherunemploymentwww.hackshp.cnearlyon,todecreaseinflation,andunemploymentlowerthanthenaturalratetheyearbeforetheelection.b.Ifvotershaverationalexpectations,theywillunderstandwhatyouaretryingtodo.Youwillnotbeabletoaffecttheunemploymentrate.Youarebetteroffkeepinginflationconstant,andunemploymentatthenaturalrate.4.Answerswillvary.5.NewZealandwantstoeliminatefearsthatthecentralbankmighttrytoreduceunemploymentbelowthenaturalratewithexpansionarymonetarypolicyandhigherinflation.SeeChapter25,pp.539-540foradiscussionofinflationtargeting.khdaw.com167若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com DigDigDeeperDeeper6.a.1/2timestheexpectedrateofinflationiftheDemocratswinplus1/2timestheexpectedrateofinflationiftheRepublicanswin.b.Lowunemployment,highinflation(π>πe)c.Highunemployment,lowinflation(π<πe)d.Yes,ifonelooksatthefirsttwoyearsofeachadministration,notjustthefirst.e.Unemploymentequaltothenaturalrate,highinflation.Thisisbecauseexpectedinflationisveryhigh,soπ=πe.7.a.IftheRepublicanscutmilitaryspending,theDemocratsget1iftheycutwelfare,but3iftheydonot.Sotheirbestresponseistovoteagainstwelfarecuts.TheRepublicanswillget–2inthiscase.b.khdaw.comIftheRepublicansdonotcutmilitaryspending,theDemocratsget–2iftheycutwelfare,butonly–1iftheydonot.Sotheirbestresponseisnottocutwelfare.TheRepublicanswillget–1inthiscase.c.Giventheanswersabove,theRepublicansdobetterwhentheydonotcutmilitaryspending,sotheywillnotcut.TheDemocratswillnotcuteither.Thetwopartiesarelockedinabadequilibrium.Theycouldmakeadeal:bothvoteforcuts.Iftheydo,theywillbothbebetteroff.CHAPTERCHAPTER2525QuickQuickCheckCheck1.a.False.课后答案网b.False.c.False.d.False/Uncertain.e.False.f.True/Uncertain.Truetotheextentthetaxcodeisnotindexedtoinflation.g.True.www.hackshp.cn2.a.DemandforM1fallswhiledemandforM2isunchanged.Peopleshiftfundsfromsavingsaccountstotimedeposits.b.DemandforM1increasesaspeopletransferfundsfrommoneymarketfundstocheckingaccounts.DemandforM2remainsunchanged.c.ShiftinthecompositionofM1(andconsequentlyM2)aspeopleholdmorecurrencyandmakefewertripstothebankwhileholdingsmallercheckingaccountbalances.d.ThedemandforM2increasesasthebenefitofholdinggovernmentsecuritiesfalls.3.a.4%-0%=4%;14%-10%=4%khdaw.com168若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com b.4%*(1-0.25)-0%=3%;14%*(1-0.25)-10%=10.5%-10%=0.5%c.Yes,giventhedeductibilityofnominalmortgageinterestpaymentsintheUnitedStates.4.Probablynot.ThesetwofactssuggestthattherehasbeenashiftinmoneydemandtowardM1,butnotanincreaseinoverallmoneygrowth,asrepresentedbyM2.5.TheFedhasthreeinstrumentsthatcanbeusedtoreducetheequilibriuminterestrate.i)Reserverequirements.IftheFedrequiresbankstoholdalargershareofdepositsinreservesthanthebankswouldchoosetodoontheirown,thenloweringthereserverequirementwillreducebankdemandforcentralbankmoney.Thisfallin(centralbank)moneydemandwilltendtoreducetheinterestrate.Intermsoftheequationlistedintheproblem,afallinreserverequirementsisafallinθ.ii)Discountpolicy.Inprinciple,adoptingmorefavorabletermsforbankborrowingfromtheFed(e.g.,loweringthediscountrate),wouldtendtoincreasebankborrowing,andtherebyincreasekhdaw.comcentralbankmoney,H,whichtheFedcreatestolendtobanks.AnincreaseinHtendstolowertheinterestrate.Inpractice,theFeddiscouragesbankborrowingexceptforspecialcircumstances.Changesinthediscountrate,however,actasasignalabouttheFed’sintentions.WhentheFedlowersthediscountrate,financialmarketparticipantstendtobelievethattheFedwillfollowmoreexpansionarypolicyinthefuture.Asaresult,expectedfutureshort-terminterestratesdecline,asdomedium-andlong-terminterestrates.iii)Openmarketoperations.TheFedcancreatecentralbankmoney,H,tobuygovernmentbonds.AnincreaseinHtendstoreducetheequilibriuminterestrate.DigDigDeeperDeeper6.Inprinciple,yes.Investmenttaxcredits,whichgivetaxbreakstofirmsthatinvest,canhelpincreaseinvestment.However,fiscalpolicyisprobablylessflexiblethanmonetarypolicy课后答案网inthiscontext.7.a.Ifinflationremainsconstantatπ*,thenunemploymentwillremainatthenaturalrate.b.Possibly,butinflationtargetingwillnoteliminatefluctuationsinunemploymentorobviatetheneedfordifficultpolicydecisionswww.hackshp.cnintheshortrun.Seethediscussiononp.540inthetext.ExploreExploreFurtherFurther8.AnswerswilldependoncurrentFedpolicy.CHAPTERCHAPTER2626QuickQuickCheckCheck1.a.True.b.False.c.Uncertain.d.False.e.False.f.Falsekhdaw.com169若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com g.False2.a.Interestpaymentsare10%ofGDP,sotheprimarysurplusis10%-4%=6%.b.Realinterestpaymentsare(10%-7%)*100%=3%ofGDP.Sotheinflation-adjustedsurplusis6%-3%=3%.c.Assumethatlastperiodunemploymentwasatthenaturalrate,sotherehasbeenatwopercentagepointincreaseintheunemploymentrateoverthelastperiod.ByOkun’slaw(withanormalgrowthrateof3%),outputgrowthislowerbytwopercentagepoints.So,outputisroughlytwopercentlowerthanitwouldhavebeen.Usingtheruleofthumbinthetext,thesurplusislowerby0.5*2%=1%.Sothecyclically-adjusted,inflation-adjustedsurplusis2%.d.ThechangeinthedebttoGDPratio=(3%-2%)*100%-3%=-2%.ThedebttoGDPratiofallsby2%ayear.e.khdaw.comIn10years,thedebttoGDPratiowillbe80%.3.a.Thenewinterestrateis10%+0.5*20%=20%.Soassumingthatexpecteddepreciationwaspreviouslyzero,thedomesticinterestrateincreasesfrom10%to20%.b.Therealinterestrateincreasesfrom3%to13%.Thehighrealinterestrateislikelytodecreasegrowth.c.Theofficialdeficitincreasesfrom4%to14%ofGDP.Theinflation-adjusteddeficitincreasesfrom–3%(asurplus)to7%(adeficit).d.Thechangeinthedebtratio=(13%-(-2%))*100%-3%=12%.Itgoesupveryquickly.e.Inthisexample,theworrieswereself-fulfilling.课后答案网4.First,evenatemporarydeficitleadstoanincreaseinthenationaldebt,andthereforetohigherinterestpayments.This,inturn,impliescontinueddeficits,highertaxes,orlowergovernmentspendinginthefuture.Second,theevidencedoesnotsupporttheRicardianequivalenceproposition.Third,ifRicardianequivalencedidhold,thengovernmentspendingwouldhavethesameeffectonoutputregardlessofwhetheritwasfinancedwww.hackshp.cnbybonds(i.e.,withadeficit)taxes.Thus,adeficit,perse,wouldnotbeneededtostimulateoutput.Fourth,war-timeeconomiesarealreadylow-unemploymenteconomies.Thereisnoneedforfurtherstimulationbyusingdeficitsratherthantaxfinance.Theonlycorrectpartofthestatementisthefirstsentence.Adeficitcanbepreferabletohighertaxesduringawar,butnotforthereasonsstatedhere.DigDigDeeperDeeper5.Discussionquestion.AlsoseetheboxonSocialSecurityinChapter11(p.215).6.Iffinancialmarketparticipantsdiscountfuturedividendsattherateofinterestongovernmentbonds,thenthiseconomywillexhibitRicardianequivalence.Ifthereisarisk-premiumappliedtostocks,thenthiseconomywillnotexhibitRicardianequivalence.Toseewhy,letτtbethedividendtaxrateattimetandconsiderthepre-dividendstockpriceunderafixedsequenceofexpecteddividends.khdaw.com170若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com $Qet=$Dt(1-τt)+$Dt+1(1-τt+1)/(1+i1t)+...=[$Deet+$Dt+1/(1+i1t)+...]-[$Dtτt+$Dt+1τt+1/(1+i1t)+...]Thesecondterminbracketsisthepresentdiscountedvalueoftaxreceiptsforthegovernment.Tofinanceagivenexpenditurepolicy,thegovernmentmustkeepthePDVoftaxreceiptsconstant.Thus,foragivensequenceofexpecteddividends,thetimingofdividendtaxeswillnotaffectthestockprice,consumptionorinvestment.Asaresult,thiseconomywillexhibitRicardianequivalence.Notethat,expost,dividendswillvaryfromtheirexpectedvalues,sotaxesmaybeadjustedinthefuture.Thisnewinformationcouldaffectstockprices.Inaddition,notethatthelevelofdividendtaxes–thePDVoftaxreceipts–couldaffectstockprices.Ifstocksareassessedariskpremium(θ),however,sothattheyarediscountedatratei+θ,thenthetimingofdividendtaxeswillmatter,becausethegovernmentbudgetconstraintwillincorporateadifferentdiscountratethanthestockmarketprice.Asanexample,supposethati=0foreverbutθispositive.Inthiscase,thegovernmentcanassesstaxesatanytimewithnoconsequence,butshiftingtaxestothefuturewillbefavorabletoholdersofstocks.Sincefuturedividendsareuncertain,soarefuturetaxpayments–theymightnothavetobemadeifdividendskhdaw.comturnouttobelow.Inthisscenario,shiftingtaxestothefuturewouldtendtoincreasethecurrentstockprice,andthusincreaseconsumptionandinvestment(iffirmsareliquidityconstrained).So,Ricardianequivalenceisviolated.课后答案网www.hackshp.cnkhdaw.com171若侵犯了您的版权利益，敬请来信通知我们！℡www.khdaw.com'