曼昆《經(jīng)濟(jì)學(xué)原理》（宏觀）第五版測試題庫 (36)

1、Chapter 36Five Debates Over Macroeconomic PolicyTRUE/FALSE1.Many studies indicate changes in monetary policy have most of their effect on aggregate demand about six months after the change is made.ANS:TDIF:1REF:36-1NAT:AnalyticLOC:Monetary and fiscal policyTOP:Monetary policyMSC:Interpretive2.The la

2、ws that created the Fed give the institution only vague recommendations about what goals it should pursue, and they do not tell the Fed how to pursue whatever goals it might choose.ANS:TDIF:1REF:36-2NAT:AnalyticLOC:Monetary and fiscal policyTOP:Monetary policyMSC:Interpretive3.The Federal Reserve op

3、erates under a rule that requires money supply growth by one percentage point for every percentage point that unemployment rises above its natural rate.ANS:FDIF:1REF:36-2NAT:AnalyticLOC:Monetary and fiscal policyTOP:Monetary policyMSC:Interpretive4.Proponents of a balanced government budget acknowle

4、dge that running a budget deficit is justifiable in time of war.ANS:TDIF:1REF:36-4NAT:AnalyticLOC:Monetary and fiscal policyTOP:Government debtMSC:Interpretive5.In effect, a consumption tax would put all saving automatically into a tax-advantaged savings account similar to an Individual Retirement A

5、ccount (IRA).ANS:TDIF:2REF:36-5NAT:AnalyticLOC:Monetary and fiscal policyTOP:Taxes, savingMSC:Interpretive6.One prominent debate over macroeconomic policy centers on the question of whether monetary and fiscal policy should be used to try to stabilize the economy.ANS:TDIF:1REF:36-1NAT:AnalyticLOC:Mo

6、netary and fiscal policyTOP:Stabilization policyMSC:Interpretive7.Peoples skepticism about central bankers announcements of their intentions stems from the fact that policymakers may act in a fashion that is time inconsistent.ANS:TDIF:2REF:36-2NAT:AnalyticLOC:Monetary and fiscal policyTOP:Monetary p

7、olicyMSC:Interpretive8.Proponents of zero-inflation policies acknowledge that the public is unconcerned about the inflation rate.ANS:FDIF:1REF:36-3NAT:AnalyticLOC:Monetary and fiscal policyTOP:InflationMSC:Interpretive9.Proponents and opponents of balanced-budget policies agree that the government d

8、ebt cannot continue to increase forever.ANS:FDIF:1REF:36-4NAT:AnalyticLOC:Monetary and fiscal policyTOP:Government debtMSC:Interpretive10.A recession has no benefit to society-it represents a sheer waste of resources.ANS:TDIF:1REF:36-1NAT:AnalyticLOC:The study of economics and definitions in economi

9、csTOP:Stabilization policyMSC:Definitional11.A lean against the wind policy says the government should not use stabilization policy and simply let the economy weather the storm.ANS:FDIF:1REF:36-1NAT:AnalyticLOC:Monetary and fiscal policyTOP:Stabilization policyMSC:Definitional12.Advocates of stabili

10、zation policy argue that when there is a recession, the government should increase the money supply and increase government expenditures.ANS:TDIF:1REF:36-1NAT:AnalyticLOC:Monetary and fiscal policyTOP:Stabilization policyMSC:Applicative13.Economists predict the business cycle well enough that stabil

11、ization policy is likely to work despite lags in the effects of policy.ANS:FDIF:2REF:36-1NAT:AnalyticLOC:Understanding and applying economic modelsTOP:Stabilization policy | Economic forecastsMSC:Definitional14.The laws that created the Fed give it some specific recommendations about what goals it s

12、hould pursue so it has little discretion in making policy.ANS:FDIF:2REF:36-2NAT:AnalyticLOC:Monetary and fiscal policyTOP:Monetary policy discretion versus rulesMSC:Definitional15.If the central bank has discretion to make policy, it may create economic fluctuations that reflect the electoral calend

13、ar. This is called the political business cycle.ANS:TDIF:1REF:36-2NAT:AnalyticLOC:Understanding and applying economic modelsTOP:Political business cycleMSC:Definitional16.If the Fed followed a rule for monetary policy, the time inconsistency problem would be eliminated.ANS:TDIF:1REF:36-2NAT:Analytic

14、LOC:Understanding and applying economic modelsTOP:Time inconsistencyMSC:Interpretive17.In practice, the problems created by time inconsistency and the political business cycle appear to be quite serious.ANS:FDIF:1REF:36-2NAT:AnalyticLOC:Understanding and applying economic modelsTOP:Time inconsistenc

15、y | Political business cycleMSC:Definitional18.Economists agree that if a monetary policy rule is to be used, the best one makes the growth rate of the money supply constant.ANS:FDIF:1REF:36-2NAT:AnalyticLOC:Monetary and fiscal policyTOP:Monetary policy discretion versus rulesMSC:Definitional19.The

16、cost of inflation reduction is a large, permanent increase in unemployment.ANS:FDIF:1REF:36-3NAT:AnalyticLOC:Monetary and fiscal policyTOP:Inflation reductionMSC:Applicative20.The cost of inflation reduction is less if people believe that the central bank will really reduce inflation.ANS:TDIF:2REF:3

17、6-3NAT:AnalyticLOC:Monetary and fiscal policyTOP:Inflation reductionMSC:Applicative21.It is possible that the cost of inflation reduction might be quite large compared to the annual costs of moderate inflation.ANS:TDIF:1REF:36-3NAT:AnalyticLOC:Monetary and fiscal policyTOP:Inflation reductionMSC:App

18、licative22.There are ways that policymakers could reduce the costs of inflation without reducing inflation.ANS:TDIF:1REF:36-4NAT:AnalyticLOC:Monetary and fiscal policyTOP:Inflation costsMSC:Applicative23.When the government has a deficit, a burden is necessarily imposed on future generations of taxp

19、ayers.ANS:FDIF:1REF:36-4NAT:AnalyticLOC:Monetary and fiscal policyTOP:Budget deficits | Generational effects of deficitsMSC:Applicative24.The average U.S. citizens share of the government debt represents about 10 percent of her lifetime income.ANS:FDIF:1REF:36-4NAT:AnalyticLOC:Monetary and fiscal po

20、licyTOP:Burden of the debtMSC:Definitional25.Social Security transfers wealth from younger generations to older generations.ANS:TDIF:1REF:36-4NAT:AnalyticLOC:The role of governmentTOP:Burden of the debtMSC:Applicative26.The major driver of future federal spending is rising health care costs.ANS:TDIF

21、:1REF:36-4NAT:AnalyticLOC:The role of governmentTOP:Burden of the debtMSC:Applicative27.The major driver of future federal spending is rising energy costs.ANS:FDIF:1REF:36-4NAT:AnalyticLOC:The role of governmentTOP:Burden of the debtMSC:Applicative28.A nations saving rate is not a primary determinan

22、t of its long-run economic prosperity.ANS:FDIF:1REF:36-4NAT:AnalyticLOC:Understanding and applying economic modelsTOP:SavingMSC:Interpretive29.Once state and federal taxes are added together, a typical worker faces about a 40 percent marginal tax-rate on interest income.ANS:TDIF:1REF:36-4NAT:Analyti

23、cLOC:Understanding and applying economic modelsTOP:Saving incentivesMSC:Definitional30.Tax laws do not give preferential treatment to some kinds of retirement saving.ANS:FDIF:1REF:36-5NAT:AnalyticLOC:The study of economics and definitions in economicsTOP:Saving incentivesMSC:Definitional31.Some stud

24、ies have found that saving is not very sensitive to the rate of return on saving.ANS:TDIF:1REF:36-5NAT:AnalyticLOC:Monetary and fiscal policyTOP:Saving incentivesMSC:Definitional32.A reduction in the marginal tax-rate includes a substitution effect that tends to increase savings.ANS:TDIF:1REF:36-5NA

25、T:AnalyticLOC:Monetary and fiscal policyTOP:Income and substitution effect | Saving incentivesMSC:Applicative33.A reduction in the marginal tax-rate includes an income effect that tends to increase savings.ANS:FDIF:1REF:36-5NAT:AnalyticLOC:Monetary and fiscal policyTOP:Income and substitution effect

26、 | Saving incentivesMSC:Applicative34.In essence, a consumption tax puts all saving into tax-advantaged savings accounts.ANS:TDIF:1REF:36-5NAT:AnalyticLOC:Monetary and fiscal policyTOP:Saving incentivesMSC:Interpretive35.If real output grows at 3 percent per year and the inflation rate is 3 percent

27、per year then government debt can grow by 6 percent per year and not increase the ratio of debt to income.ANS:TDIF:1REF:36-5NAT:AnalyticLOC:Understanding and applying economic modelsTOP:Debt-to-income ratioMSC:Interpretive36.Forward looking parents can reverse the adverse effects of government debt

28、by saving more and leaving a larger bequest to their children.ANS:TDIF:1REF:36-5NAT:AnalyticLOC:Understanding and applying economic modelsTOP:SavingMSC:InterpretiveSHORT ANSWER1.Explain the main arguments in favor of economic stabilization.ANS:Fluctuations in the economy-recessions and booms-are cos

29、tly. Recessions in particular are a waste of resources, since people and machines are idle when they could be producing goods and services. Stabilization policies can help to eliminate this waste of resources.DIF:1REF:36-1TOP:Stabilization policyMSC:Interpretive2.Explain why policy lags could make s

30、tabilization policies counterproductive.ANS:As the textbook explains, it takes time to recognize an economic problem, to take action, and for that action to have its effect on the economy. By the time a policy is enacted and takes effect, the economy may have already recovered. So policy will end up

31、 being destabilizing; it may actually result in larger economic fluctuations.DIF:1REF:36-1TOP:Stabilization policyMSC:Interpretive3.Which kind of lag is important for monetary policy? Which kind of lag is important for fiscal policy?ANS:Both are prone to lags, but the lags are different for the two

32、types of policy. Monetary policy can be enacted quickly, but because it works through changes in interest rates and investment, it may take a long time to have an impact. Fiscal policy works with a long lag due to the polictical process that must be followed, including congressional committees and t

33、he requirement of Presidential approval.DIF:1REF:36-1TOP:Policy lagsMSC:Interpretive4.Suppose that changes in aggregate demand tended to be infrequent and that it takes a long time for the economy to return to long-run output. How would this affect the arguments of those who oppose using policy to s

34、tabilize output?ANS:Those who oppose stabilization policy mostly argue that by the time policy can be put into action and affect aggregate demand, economic conditions may have changed so that the policy is no longer appropriate. If the economy tended to stay on one side of the natural rate of output

35、 for a long time, policymakers could worry less about lags.DIF:3REF:36-1TOP:Stabilization policyMSC:Analytical5.What is the political business cycle and how does it relate to whether the central bank should have discretion or use a rule?ANS:The political business cycle describes the idea that politi

36、cians may manipulate the economy to serve their own political ends. For example, the political party in power might want to generate an economic boom prior to an election, even if this policy is ultimately not in the best interest of the country. If the central bank had to follow a policy rule it wo

37、uld be unable to manipulate monetary policy for political gain.DIF:1REF:36-2TOP:Political business cycleMSC:Analytical6.Explain the time inconsistency of monetary policy.ANS:Time inconsistency refers to the idea that policymakers may have an incentive to say one thing but do something different. For

38、 example, the Fed may wish to announce a tight monetary policy, in a bid to reduce expectations about inflation, but if inflation expectations fall, it may want to enact a loose monetary policy, in order to stimulate the economy. The result is likely to be a loss of the Feds credibility and a higher

39、 expected inflation rate.DIF:2REF:36-2TOP:Time inconsistencyMSC:Analytical7.Describe three costs of inflation.ANS:There are several costs of inflation. Shoeleather costs are the resources people spend to economize on their money holdings when inflation is high. Menu costs are the costs created by ch

40、anging price tags and prices in menus and catalogs. Increased relative price variability from higher inflation distorts signals provided by relative price changes and so misallocates resources. Distortions created by inflation in the tax code discourage saving and so may lower the standard of living

41、. Unexpected inflation arbitrarily redistributes wealth. In general a changing value of the unit of account creates inconvenience.DIF:1REF:36-3TOP:Inflation costsMSC:Definitional8.Suppose a country has had a high and relatively stable inflation rate for a long time. How might this affect the costs a

42、nd benefits of inflation reduction?ANS:If inflation is usually about what people expect, the arbitrary redistribution of wealth associated with dollar-denominated debts may be small. High and continuing inflation may lead people to develop ways to lessen the costs of inflation. Indexed bonds and che

43、cking accounts or government policy to reduce tax distortions created by the tax code are examples. The costs of inflation reduction may be high if people have become accustomed to inflation. When expected inflation is high, the tradeoff between inflation and unemployment is poor and even small redu

44、ctions in inflation may require large increases in unemployment. Further, a country that has experienced high inflation for a long time is likely to be skeptical of the central banks commitment to reduce inflation.DIF:2REF:36-3TOP:Inflation reductionMSC:Analytical9.Whats the basis for arguing that d

45、eficits are likely to lead to lower living standards in the future?ANS:A government deficit means that the government is dissaving. Unless the governments failure to save is offset by increased private saving, a government deficit is likely to be associated with lower national saving. Lower national

46、 saving means a lower capital stock, and hence lower living standards in the future.DIF:2REF:36-4TOP:Burden of the debtMSC:Analytical10.Suppose that the government goes into deficit in order to help local school districts build better schools. Does this burden future generations?ANS:The benefits of

47、the project accrue not just to the current generation, but also to future generations. By running a deficit, the government spreads some of the cost to future generations as well.DIF:1REF:36-4TOP:Burden of the debtMSC:Applicative11.Explain how it is possible for the government debt to grow forever.A

48、NS:The debt can grow because the economy grows. If, for example, nominal GDP grows at 3 percent per year, and the debt also grows at 3 percent per year, then the debt will be a constant fraction of GDP. This is perfectly sustainable. Problems arise only if the debt grows faster than GDP. Such a situ

49、ation cannot prevail forever, because that would imply that the debt would eventually be many times larger than GDP, and the government would no longer be able to pay the interest payments on its debt.DIF:2REF:36-4TOP:Debt-to-income ratioMSC:Analytical12.Is it possible that deficits do not burden fu

50、ture generations?ANS:Some programs, such as Social Security, tax younger generations to provide benefits for older generations. Some programs, such as education, have benefits primarily for younger generations.Programs such as education may have greater benefits than costs for younger generations. F

51、orward thinking parents can save in the face of government deficits. The increased saving can translate into a larger bequest for their children and offset the increased debt burden the future generation faces.DIF:1REF:36-4TOP:Burden of the debtMSC:Applicative13.Identify three government policies th

52、at discourage saving.ANS:First, the returns to saving are heavily taxed (which is why some economists advocate a consumption tax). Second, there is double taxation of some forms of capital income. Third, bequests above some level are taxed, which limits parents incentives to save for their children.

53、 Fourth, some government benefits are means-tested, so a household that saves is less likely to receive such benefits.DIF:2REF:36-4TOP:Saving incentivesMSC:Applicative14.Means-tested government programs tend to reduce saving. What are means-tested programs and how do they reduce saving?ANS:Means-tes

54、ted benefits give assistance, or more assistance, to those who can show need by way of lack of income. Those who save accumulate wealth and so are less likely to qualify for assistance. Consequently, the programs discourage saving.DIF:2REF:36-4TOP:Saving incentives | Means testsMSC:Applicative15.Why

55、 do many economists advocate a consumption tax rather than an income tax?ANS:The current income tax means that income is taxed at the same rate if it is used for current consumption or if it is saved. A consumption tax would encourage saving, because individuals would be taxed only when they spend.

56、Income saved would be exempt from tax until it was ultimately used for consumption. Thus a consumption tax would encourage saving.DIF:2REF:36-5TOP:Saving incentives | Consumption taxMSC:Interpretive16.Explain how a higher rate of return on saving could, at least in theory, lead to lower saving.ANS:A higher rate of return on saving means that savers obtain higher income. The associated income effect means that individuals have an incentive to consume more t