国际经济学第九版英文课后答案 第17单元

*CHAPTER 17(Core Chapter)THE INCOME ADJUSTMENT MECHANISM AND SYNTHESISOF AUTOMATIC ADJUSTMENTSOUTLINE17.1 Introduction17.2 Income Determination in a Closed Economy17.2a Determination of the Equilibrium National Income in a Closed Economy17.2b The Multiplier in a Closed Economy17.3 Income Determination in a Small Open Economy17.3a Import FunctionCase Study 17-1: Income Elasticity of Imports and Exports in the Leading IndustrialCountries17.3b Determination of Equilibrium National Income in a Small Open Economy17.3c Graphical Determination of the Equilibrium National IncomeCase Study 17-2: Savings, Investments, and the Current Account Balance in the Leading Industrial Nations17.3d Foreign-Trade Multiplier17.4 Foreign RepercussionsCase Study 17-3: Growth in United States and Abroad, and U.S. Current AccountDeficitsCase Study 17-4: Growth and Current Account Balance in Developing Countries17.5 Absorption ApproachCase Study 17-5: Effect of the Asian Financial Crisis of the Late 1990s on OECDCountries17.6 Monetary Adjustments and Synthesis of Automatic Adjustments17.6a Monetary Adjustments17.6b Synthesis of Automatic AdjustmentsCase Study 17-6: Interdependence in the World Economy17.6c Disadvantages of Automatic AdjustmentsAppendix: A17.1 Derivation of Foreign Trade Multipliers with Foreign Repercussions A17.2 The Transfer Problem Once AgainKey TermsClosed economy Import functionEquilibrium level of national income (YE) Marginal propensity to import (MPM) Desired or planned investment Average propensity to import (MPM)Marginal propensity to consume (MPC) Income elasticity of imports (ny) Consumption function Export functionSaving function Foreign trade multiplier (k')Marginal propensity to save (MPS) Foreign repercussionsInvestment function Absorption approachMultiplier (k) Synthesis of automatic adjustments Lecture Guide:1. In the first lecture on Chapter 17 (a core chapter), I would cover sections 1 and 2 andassign problems 1 to 4. Section 2 is a review of principles of economics but myexperience is that the average student needs it to clearly understand the material in the rest of the chapter.2. In the second lecture, I would cover sections 3 and 4 and assign problems 3 to 8. Mostother texts do not deal with foreign trade multipliers in any great detail because of thedifficulty of deriving them. However, their meaning and use is important and they can s still be discussed without deriving them (their derivation is in section A17.1 of theappendix, which can be made optional for the best and most eager students in the class).3. In the third lecture, I would cover sections 5 and 6 and assign problems 9 to 14. Thesetwo sections are very important and difficult.Answer to Problems:1. See Figure 1 on the next page.The equilibrium level of national income is Y E = 1,000 and is given by point E at which the C+I function crosses the 45° line.2. a. S=-100+0.2Y.The saving function is obtained by subtracting vertically the consumption function from the 45˚ lineb. See Figure 2.The equilibrium level of national income is Y E = 1,000 and is given by point E at which the positively-sloped S function crosses the horizontal I function.3. See Figure 3.The new equilibrium level of national income is Y E = 1,500 and is given by point E' at which the new C+I' function crosses the 45° line.4. a. See Figure 4 on the next page.The new equilibrium level of national income is Y E = 1,500 and is given by point E' atwhich the S function crosses the new I' function.b. k=1/MPS=1/(1/5)=5.5. a. S(Y)+M(Y)=-100+0.2Y+150+0.2Y=50+0.4YI+X=100+350=45050+0.4Y=450; therefore, Y E=400/0.4=1000.b. See Figure 5.The equilibrium level of national income is Y E = 1,000 and is given by point E at which the positively-sloped S+M function crosses the horizontal I+X function.6. See Figure 6.The equilibrium level of national income is Y E = 1,000 and is given by point E at which the negatively-sloped X-M function crosses the positively-sloped S-I function.7. a. I+X'=100+350+200=65050+0.4Y=650;therefore, Y E'=1500At Y E'=1500, M=150+0.2Y=150+(0.2)(1500)=450X'-M=550-450=100See Figure 7 on page 155.b. I'+X=650Y E'=1500X-M=350-450=-100See Figure 8.c. X'+I'=550+300=85050+0.4Y=850therefore, Y E"=2000At Y E"=2000, M=150+0.2Y=150+(0.2)(2000)=550X'-M=550-550=0See Figure 9 on page 155.8. a. S'(Y)+M(Y)=-200+0.2Y+150+0.2Y=-50+0.4YI+X=100+350=450-50+0.4Y=450therefore, Y E'=1250At Y E'=1250, M=150+0.2Y=150+(0.2)(1250)=400X-M=350-400=-50 SSee Figure 10 on page 157.b. S(Y)+M'(Y)=-100+0.2Y+50+0.2Y=-50+0.4Y-50+0.4Y=450therefore, Y E'=1,250at Y E'=1250, M'=50+0.2Y=50+(0.2)(1,250)=300X-M'=350-300=50 (see Figure 11).c. S'(Y)+M'(Y)=-200+0.2Y+50+0.2Y=-150+0.4Y-150+0.4Y=450therefore, Y E"=1500at Y E"=1500, M'=50+0.2Y=50+(0.2)(1500)=350X-M'=350-350=0 (see Figure 12).(6921029.doc) 17-8 Dominick Salvatore∆YE=(∆X)(k")=(200)(1.88)=376∆M=(∆YE)(MPM1)=(376)(0.20)=75.2∆S=(∆YE)(MPS1)=(376)(0.20)=75.2∆X=∆S+ ∆M=75.2+75.2=150.4 so that∆X-∆M=75.2=Nation 1's trade surplus.∆YE=(∆I)(k*)=(200)(3.13)=626∆M=(∆YE)(MPM1)=(626)(0.20)=125.2∆S=(∆YE)(MPS1)=(626)(0.20)=125.2200+∆X=125.2+125.2and ∆X=50.4 so thatM=50.4-125.2=-74.8∆X-∆∆M=(∆YE)(MPM1)=(250)(0.20)=50=∆S(6921029.doc) 17-9 Dominick Salvatore∆X=∆S+∆M =100∆X-∆M=5∆YE=(∆I*)(k**)=(200)(0.95)=190∆M=(∆YE)(MPM1)=(190)(0.15)=28.5=∆S∆X=∆S+∆M=57∆X-∆M=28.512. The X-M function would shift up as in Figure 9 without full employment. With fullemployment, the depreciation will result in inflation and a return to the condition ofFigure 8 (i.e., the X-M function would shift up and then down to its original position),unless domestic absorption is somehow reduced.13. One reason is that the government sector is not included. Another reason is if the nationis not in equilibrium.14. The advantages of automatic over policy adjustment to correct a trade disequilibrium are:(1) adjustment begins to operate even before the problem is recognized; (2) there are nopossibilities of policy mistakes; and (3) the adjustment will continue until the tradedisequilibrium is entirely eliminated. On the other hand, adjustment policies can only be enacted after the problem is recognized. There are then delays to enact policies and forthem to have effect. Thus, by the time adjustment policies become effective the nationmay not longer face the problem or may face the opposite problem. Wrong policies can also be adopted.App. 1a. ∆I + m*∆Y* = s∆Y + m∆Y∆I* + m∆Y = s*∆Y* + m*∆Y*∆X + m*∆Y* = s∆Y - m∆Y-∆X + m∆Y = (s*+m*)∆Y*(6921029.doc) 17-10 Dominick Salvatore-∆X + m∆Y = ∆Y*s* + m*∆X + m*(-∆X + m∆Y) = s∆Y + m∆Ys* + m*∆X + -m*∆X + m*m∆Y = (s + m)∆Ys* + m+s*∆X + m*∆X - m*∆X + m*m∆Y = (s + m)(s* + m*)∆Ys*∆X + m*m∆Y = (s + m)(s* + m*)∆Ys*∆X = [(s + m) (s* + m*) - m*m]∆Y∆X = [ ]∆Y s*∆Y = s* = 1∆X ss* + mm* + ms* + m*s - m*m s + m + m*s/s*b. k" = 1s + mthat is, k" is already a foreign repercussion.App. 2. Most petroleum exporting nations, notably Saudi Arabia, Libya, and Kuwait could not spend all of their petroleum earnings on increased imports from petroleum importing countries during the 1970s. Most unspent earnings were used for portfolio purchases inthe developed nations, especially in the U.S., through the Eurodollar market. At the sametime, most oil-importing nations deflated their economies to reduce their oil bill andbalance of payments difficulties. The sharp decline in petroleum since 1981completelyeliminated the excess earnings of most OPEC nations so that the transfer problemdisappeared.Multiple-choice Questions:1. In order to isolate the income adjustment mechanism, we assume that:a. the nation operates under a fixed exchange rate systemb. all prices, wages, and interest rates are constantc. the nation operates at less than full employment(6921029.doc) 17-11 Dominick Salvatore*d. all of the above2. The marginal propensity to consume measures:a. the ratio of imports to incomeb. the ratio of income to imports*c. the change in imports over the change in incomed. the change in income over the change in imports3. The income elasticity of imports is given by:a. the percentage change in income over the percentage change in importsb. the change in imports over the change in income*c. the marginal propensity to import over the average propensity to importd. the average propensity to import over the marginal propensity to import4. The equilibrium level of national income in an open economy is given by:a. I + X = S + Mb. X - M = S - Ic. I + (X-M) = S*d. all of the above5. If MPS=0.2 and MPM=0.3, the foreign trade multiplier is:a. 5b. 3.3c. 3*d. 26. When S exceeds I, an open economy has a trade balance:*a. surplusb. deficitc. equilibriumd. any of the above7. The S-I function rises because:a. rising I are subtracted from constant S*b. constant I are subtracted from rising Sc. rising I are subtracted from rising Sd. constant I are added to falling S(6921029.doc) 17-12 Dominick Salvatore8. An autonomous fall in M from a condition of equilibrium in national income and in thetrade balance results in the nation's income:a. rising and its trade balance turning to deficitb. falling and its trade balance turning into surplus*c. rising and its trade balance turning into surplusd. rising and the trade balance remaining in equilibrium9. An autonomous increase in S from a condition of equilibrium in national income and in the trade balance results in the nation's income:a. rising and its trade balance turning into surplus*b. falling and its trade balance turning into surplusc. falling and its trade balance turning into deficitd. rising and its trade balance turning into deficit10. The foreign trade multiplier of nation 1 is largest:a. when there are no foreign repercussionsb. with foreign repercussions for an autonomous increase in nation 1's X that replace domestic production in nation 2*c. with foreign repercussions for an autonomous increase in I in nation 1d. with foreign repercussions for an autonomous increase in I in nation 211. By itself, the automatic income adjustment mechanism is likely to bring about:*a. incomplete adjustmentb. complete adjustmentc. perverse adjustmentd. any of the above12. A depreciation of a deficit nation's currency from a condition of full employment:*a. may improve the nation's trade balanceb. will improve the nation's trade balancec. will leave the nation's trade balance unchangedd. will cause a deterioration in the nation's trade balance13. The improvement in a nation's balance of trade and payments resulting from a depreciation of its currency is:a. reinforced by the induced fall in imports(6921029.doc) 17-13 Dominick Salvatore*b. partly neutralized by the induced rise in importsc. partly neutralized by the induced fall in importsd. any of the above.14. In the real world, the automatic income, price, and interest adjustment mechanisms, ifallowed to operate, are likely to:a. reinforce each other but still result in incomplete adjustment*b. reinforce each other and result in complete adjustmentc. work at cross purposes from each other and result in incomplete adjustmentd. work at cross purposes from each other and result in perverse adjustment15. A benefit of automatic adjustment mechanisms is that they:a. avoid the possibility of policy mistakesb. avoid the time lags associated with adjustment policiesc. begin to operate as soon as balance of payments disequilibria develop*d. all of the above(6921029.doc) 17-14 Dominick Salvatore。