1。 | Compared to a clod economy, an open economy is one that: | |
A) | allows the exchange rate to float。 | |
B) | fixes the exchange rate. | |
C) | trades with other countries. | |
D) | does not trade with other countries。 | |
2. | The Mundell–Fleming model assumes that: | |
A) | prices are flexible, whereas the IS–LM model assumes that prices are fixed。排线练习 | |
B) | prices are fixed, whereas the IS–LM model assumes that prices are flexible. | |
C) | as in the IS–LM model, prices are fixed. | |
D) | as in the IS–LM model, prices are flexible。 | |
3. | The Mundell–Fleming model is a ______ model for a ______ open economy。 | |
A) | short-run; small | |
B) | short—run; large | |
C) | long-run; large | |
D) | 母亲节活动long-run; small | |
4。 | In the Mundell–Fleming model: | |
A) | the exchange rate system must have a floating exchange rate。 | |
B) | the exchange rate system must have a fixed exchange rate. | |
C) | it makes no difference whether the exchange rate system has a floating or a fixed exchange rate。 | |
D) | the behavior of the economy depends on whether the exchange rate system has a floating or fixed exchange rate。 | |
5。 | In the Mundell–Fleming model, the domestic interest rate is determined by the: | |
A) | interction of the LM and IS curves。 | |
B) | domestic rate of inflation。 | |
C) | world rate of inflation. | |
D) | world interest rate. | |
6. | In a small open economy with perfect capital mobility, if the domestic interest rate were to ri above the world interest rate, then ______ would drive the domestic interest rate back to the level of the world interest rate。 | |
A) | capital inflow | |
B) | capital outflow | |
开车犯困六个妙招帮你提神 | C) | the central bank |
D) | a decline in domestic saving | |
7. | Assuming there is perfect capital mobility, compared to a large open economy, a small open economy is one in which the: | |
A) | exchange rate is fixed。 | |
B) | exchange rate is floating. | |
C) | domestic interest rate equals the world interest rate. | |
D) | domestic interest rate is not equal to the world interest rate。 | |
8。 | In a small open economy a decrea in the exchange rate will _____ net exports and shift the _____ curve。 | |
A) | increa; IS | |
B) | decrea; IS | |
C) | increa; LM | |
酒吧钢管舞 D) | 柳体字的特点decrea; LM | |
9。 | If short-run equilibrium in the Mundell–Fleming model is reprented by a graph with Y along the horizontal axis and the exchange rate along the vertical axis, then the IS* curve: | |
A) | slopes downward and to the right becau the higher the exchange rate, the lower the level of net exports and, therefore, of short—run equilibrium income in the goods market. | |
B) | is vertical becau there is only one investment level that is consistent with the world interest rate. | |
C) | is vertical becau the exchange rate does not enter into the IS* equation。 | |
D) | slopes downward and to the right becau the higher the exchange rate, the higher the level of net exports and, therefore, of short—run equilibrium income in the goods market. | |
10. | In the Mundell–Fleming model on a Y – e graph, the curves labeled IS* and LM* are labeled that way as a reminder that: | |
A) | the price level is held constant at the world price level p*。 | |
B) | the interest rate is held constant at the world interest rate r*。 | |
病式精神病 | C) | the exchange rate is held constant at the world exchange rate e*. |
D) | output is held constant at the full employment level。 | |
11. | If short—run equilibrium in the Mundell–Fleming model is reprented by a graph with Y along the horizontal axis and the exchange rate along the vertical axis, then the LM* curve: | |
A) | slopes upward and to the right becau at a higher income a higher interest rate is needed to increa velocity。 | |
B) | is vertical becau monetary velocity is independent of the interest rate。 | |
C) | is vertical becau the exchange rate does not enter into the LM* equation。 | |
D) | slopes upward and to the right becau a higher exchange rate leads to a higher income。 | |
12. | In the Mundell–Fleming model, the exogenous variables are the: | |
A) | world interest rate, the price level, and the exchange rate。 | |
B) | level of government spending, taxes, and income. | |
C) | exchange rate and level of income. | |
D) | price level, world interest rate, monetary policy, and fiscal policy。 | |
13. | The interction of the IS* and LM* curves shows the ______ and the ______ at which both the goods market and the money market are in equilibrium. | |
A) | interest rate; price level | |
B) | price level; exchange rate | |
C) | level of output; exchange rate | |
D) | level of output; price level | |
14。 | Under a floating system, the exchange rate: | |
A) | fluctuates in respon to changing economic conditions. | |
B) | is maintained at a predetermined level by the central bank。 | |
C) | is changed at regular intervals by the central bank。 | |
D) | fluctuates in respon to changes in the price of gold. | |
15。 | In a small open economy with a floating exchange rate, an effective policy to increa equilibrium output is to: | |
A) | increa government spending. | |
B) | increa taxes。 | |
C) | increa the money supply. | |
D) | decrea the money supply。 | |
16。 | In a small open economy with a floating exchange rate, an effective policy to decrea equilibrium output is to: | 鸡胸肉蛋白质含量|
A) | decrea government spending。 | |
B) | decrea taxes。 | |
C) | increa the money supply. | |
D) | decrea the money supply. | |
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