Chapter 30
Money Growth and Inflation
TRUE/FALSE
1. The inflation rate is measured as the percentage change in a price index. ANS: T DIF: 1 REF: 30-0 NAT: Analytic LOC: Unemployment and inflation TOP: Inflation KEY: MSC: Definitional 2. U.S. prices rose at an average annual rate of about 4 percent over the last 70 years. ANS: T DIF: 1 REF: 30-0 NAT: Analytic LOC: The role of money TOP: Inflation MSC: Analytical
3. The United States has never had deflation. ANS: F DIF: 1 REF: 30-0 NAT: Analytic LOC: The role of money TOP: Deflation
MSC: Definitional
4. In the 1990s, U.S. prices rose at about the same rate as in the 1970s. ANS: F DIF: 1 REF: 30-0 NAT: Analytic LOC: The role of money TOP: U.S. inflation MSC: Definitional
5. As the price level falls, the value of money falls. ANS: F DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Value | Money
MSC: Interpretive
6. The price level is determined by the supply of, and demand for, money. ANS: T DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money market MSC: Definitional
7. If the quantity of money supplied is greater than the quantity demanded, then prices should fall. ANS: F DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money market MSC: Analytical
8. Dollar prices and relative prices are both nominal variables. ANS: F DIF: 1 REF: 30-1 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. ANS: T DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Quantity equation
MSC: Definitional
10. According to the Fisher effect, if inflation rises then the nominal interest rate rises. ANS: T DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Fisher effect MSC: Definitional
11. An increase in money demand would create a surplus of money at the original value of money. ANS: F DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money market MSC: Applicative
2014
12. Hyperinflations are associated with governments printing money to finance expenditures. ANS: T DIF: 1 REF: 30-1 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. ANS: T DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Velocity of money MSC: Analytical
14. The quantity theory of money can explain hyperinflations but not moderate inflation. ANS: F DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Hyperinflation 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. ANS: T DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money | Value 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. ANS: F DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money demand MSC: Applicative
17. The money supply curve shifts to the left when the Fed buys government bonds. ANS: F DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money supply MSC: Analytical
18. When the value of money is on the vertical axis, the money supply curve slopes upward because an increase in
the value of money induces banks to create more money. ANS: F DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money supply MSC: Definitional
19. If the Fed increases the money supply, the equilibrium value of money decreases and the equilibrium price
level increases. ANS: T DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money market MSC: Analytical
20. A rising price level eliminates an excess supply of money. ANS: T DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money MSC: Analytical
TOP: Money market
21. A rising value of money eliminates an excess supply of money.
ANS: F DIF: 2 REF: 30-1
NAT: Analytic LOC: The role of money TOP: Money market
MSC: Analytical
22. Nominal GDP measures output of final goods and services in physical terms.
ANS: F DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Nominal variables MSC: Interpretive
2016 Chapter 30 /Money Growth and Inflation
23. 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. ANS: T DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Classical dichotomy 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. ANS: T DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Monetary neutrality 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. ANS: F DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Quantity theory MSC: Applicative
26. The source of all four classic hyperinflations was high rates of money growth. ANS: T DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Hyperinflation 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. ANS: F DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Quantity theory MSC: Definitional
28. Inflation induces people to spend more resources maintaining lower money holdings. The costs of doing this
are called shoeleather costs. ANS: T DIF: 1 REF: 30-2 NAT: Analytic LOC: The role of money TOP: Shoeleather costs of inflation MSC: Definitional
29. Shoeleather costs and menu costs are both costs of anticipated inflation. ANS: T DIF: 1 REF: 30-2 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. ANS: T DIF: 2 REF: 30-2 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. ANS: F DIF: 2 REF: 30-2 NAT: Analytic LOC: The role of money TOP: Inflation | Real interest rate MSC: Interpretive
32. Inflation distorts savings when real interest income, rather than nominal interest income, is taxed. ANS: F DIF: 2 REF: 30-2 NAT: Analytic LOC: The role of money TOP: Inflation | Real interest rate MSC: 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. ANS: F DIF: 2 REF: 30-2 NAT: Analytic LOC: The role of money TOP: Taxes | Real interest rate MSC: Interpretive
曼昆《经济学原理》(宏观)第五版测试题库 (30)
