Chapter-8-宏觀經(jīng)濟學原理-弗蘭克版-題庫（含答案）

Chapter8

Student:___________________________________________________________________________

1.

Savingequals:

A.

currentspendingminuscurrentincome.

B.

wealthminusassets.

C.

assetsminusliabilities.

D.

currentincomeminusspendingoncurrentneeds.

2.

Currentincomeminusspendingoncurrentneedsequals:

A.

saving.

B.

wealth.

C.

transfers.

D.

investment.

3.

Thesavingrateequalssavingdividedby:

A.

wealth.

B.

assets.

C.

liabilities.

D.

income.

4.

Patearns$1,000perweekandspends$850perweekonlivingexpenses,puts$50inasavingsaccount,andbuys$100worthofsharesinastockmutualfund.Pat'ssavingis_____,andPat’ssavingrateis_____.

A.

$50;5.0%

B.

$50;5.9%

C.

$100;10%

D.

$150;15%

5.

Chrisearns$1,500perweekandspends$1,000perweekonlivingexpenses,puts$200inasavingsaccount,andbuys$300worthofsharesinastockmutualfund.Chris'ssavingis_____,andChris’ssavingrateis_____.

A.

$200;13.3%

B.

$200;20.0%

C.

$300;20.0%

D.

$500;33.3%

6.

Wealthequals:

A.

currentincomeminusspendingoncurrentneeds.

B.

assetsminusliabilities.

C.

savingminusinvestment.

D.

investmentminussaving.

7.

Wealthisthesameas:

A.

networth.

B.

assets.

C.

capitalgains.

D.

savings.

8.

Assetsare:

A.

currentincomeminusspendingoncurrentneeds.

B.

stocks,bonds,andcreditcardbalances.

C.

savingminusinvestment.

D.

anythingofvalueoneowns.

9.

Liabilitiesare:

A.

currentincomeminusspendingoncurrentneeds.

B.

thedebtsoneowes.

C.

savingminusinvestment.

D.

anythingofvalueoneowns.

10.

Whichofthefollowingisanassetofafamily?

A.

Studentloan

B.

Mortgage

C.

Unpaidcreditcardbalance

D.

Checkingaccountbalance

11.

Whichofthefollowingisaliabilityofafamily?

A.

Checkingaccountbalance

B.

Shareofstock

C.

House

D.

Mortgage

12.

WhatisthevalueofTaylor'sassets?

Taylorhasthefollowingassetsandliabilities:

A.

$308,000

B.

$416,000

C.

$419,000

D.

$422,000

13.

WhatisthevalueofTaylor'sliabilities?

Taylorhasthefollowingassetsandliabilities:

A.

$300,000

B.

$303,000

C.

$308,000

D.

$311,000

14.

WhatisTaylor'swealth?

Taylorhasthefollowingassetsandliabilities:

A.

$105,000

B.

$107,000

C.

$111,000

D.

$419,000

15.

SupposethatTaylorreceivesa$10,000bonusfromheremployer.Ifsheputsthatmoneytowardhermortgage,herwealthwould______;ifsheputsthatmoneyinhercheckingaccount,herwealthwould______.

Taylorhasthefollowingassetsandliabilities:

A.

increaseto$121,000;decreaseto$101,000

B.

increaseto$115,000;decreaseto$95,000

C.

increaseto$121,000;increaseto$121,000

D.

increaseto$115,000;increaseto$115,000

16.

Jordanhasthefollowingassetsandliabilities:

Jordan’swealthis_____,thevalueofJordan’sassetsis_____,andthevalueofJordan’sliabilityis_____.

A.

$107,000;$213,000;$100,000

B.

$109,000;$213,000;$104,000

C.

$111,000;$213,000;$100,000

D.

$213,000;$317,000;$104,000

17.

Jordanhasthefollowingassetsandliabilities:

SupposethatJordanwins$100,000inthelottery.Ifheusesthatmoneytopayoffhismortgage,hiswealthwould______;ifheputsthatmoneyinhischeckingaccount,hiswealthwould______.

A.

increaseto$209,000;notchange

B.

notchange;increaseto$207,000

C.

increaseto$209,000;increaseto$209,000

D.

increaseto$207,000;notchange

18.

Mo’scurrentincomeis$100morepermonththanhiscurrentconsumptionneeds.Hedecidestousethe$100toreducehiscreditcarddebt.Asaresult,his:

A.

liabilitieswilldecreaseandhiswealthwillincrease.

B.

liabilitiesandhiswealthwilldecrease.

C.

assetswilldecreaseandhiswealthwillincrease.

D.

assetsandhiswealthwillincrease.

19.

Ameasuredefinedatapointintimeiscalleda(n)______variable.

A.

stock

B.

nominal

C.

aggregate

D.

flow

20.

Aflowisameasuredefined:

A.

perunitoftime.

B.

atapointintime.

C.

inrealterms.

D.

innominalterms.

21.

Whichofthefollowingisaflow?

A.

Saving

B.

Wealth

C.

Assets

D.

Money

22.

Whichofthefollowingisastock?

A.

Saving

B.

Income

C.

Consumption

D.

Wealth

23.

Saving$100will:

A.

increasewealthby$100.

B.

increasewealthby$100onlyifthe$100isusedtopurchaseanasset.

C.

increasewealthby$100onlyifthe$100isusedtorepayadebt.

D.

decreasewealthby$100.

24.

Savingisa(n)______andwealthisa(n)______.

A.

stock;flow

B.

flow;stock

C.

asset;liability

D.

liability;asset

25.

TheBoyScoutshavesofarsold100ticketsfortheirupcomingraffle,buttheysellanadditional12ticketseveryday.The______isastockvariable,andthe______isaflowvariable.

A.

numberofticketssoldeachday;numberofticketssoldsofar

B.

numberofticketssoldsofar;totalnumberofticketssoldbythetimeoftheraffle

C.

numberofticketssoldeachday;totalnumberofticketsavailable

D.

totalnumberofticketssoldbythetimeoftheraffle;numberofticketssoldeachday

26.

TheBoyScoutshavesofarsold100ticketsfortheirupcomingraffle,buttheysellaconstantadditional12ticketseveryday.Afterthreemoredaysofsellingtickets,thestockofticketssoldwillbe____,andtheflowofticketssoldwillbe____.

A.

136;12

B.

36;12

C.

100;36

D.

136;36

27.

Thestockofwealthincreasesmorerapidlythefastertheflowof______.

A.

income

B.

saving

C.

money

D.

assets

28.

IfDylansaves$50perweek,thenDylan’s______willincreaseby$50perweek.

A.

investment

B.

consumption

C.

taxes

D.

wealth

29.

IfGerrysaves$500permonth,thenGerry’s______willincreaseby_____.

A.

wealth;$500onlyifhehasnodebt

B.

income;$500onlyifhebuysadditionalassets

C.

wealth;$500

D.

wealth;$500onlyifhebuysadditionalassets

30.

Capitalgainsare______,andcapitallossesare______.

A.

increasesintheflowofinvestment;decreasesintheflowofinvestment

B.

increasesintheflowofsaving;decreasesintheflowofsaving

C.

additionstoplantandequipment;thedestructionofplantandequipment

D.

increasesinthevalueofexistingassets;decreasesinthevalueofexistingassets

31.

Elaineownsabeautifuldiamondringshepurchasedfor$2,500.Whenshehasitappraisedshelearnsthatitisnowworth$3,000.Basedonthisinformation:

A.

Elaine'ssavingthisyearhasincreasedby$500.

B.

Elaine'ssavingthisyearhasdecreasedby$500.

C.

Elainehasexperienceda$500capitalgain.

D.

Elaine'swealthisunchanged.

32.

Jayownsaclassiccarhepurchasedfor$50,000.Atacarrallyaknowledgeableclassiccarenthusiastoffershim$75,000forthecar.Basedonthisinformation:

A.

Jay'ssavingthisyearhasincreasedby$25,000.

B.

Jay'ssavingthisyearhasdecreasedby$25,000.

C.

Jayhasexperienceda$25,000capitalgain.

D.

Jay'swealthisunchanged.

33.

Steveuses$300fromhispaychecktopayoffhiscreditcardbalance.Basedonthisinformation:

A.

Steve'ssavinghasincreasedby$300.

B.

Steve'ssavinghasdecreasedby$300.

C.

Steve'swealthisunchanged.

D.

Stevehasacapitallossof$300.

34.

Stevetakes$500fromhispaycheckandusesittopurchaseU.S.SavingsBonds.Basedonthisinformation:

A.

Steve'ssavinghasincreasedby$500.

B.

Steve'ssavinghasdecreasedby$500.

C.

Stevehasacapitalgainof$500.

D.

Steve'swealthisunchanged.

35.

Thechangeinwealthduringaperiodequals:

A.

saving+capitalgains-capitallosses.

B.

saving-capitalgains+capitallosses.

C.

saving-investment+capitalgains-capitallosses.

D.

publicsaving+privatesaving-transfers.

36.

IfAlexdeposits$1,000fromherpaycheckintohercheckingaccountand,atthesametime,increaseshercreditcardbalanceby$1,500,thenhersavingis______,andherwealth______.

A.

+$1,000;decreasesby$500

B.

+$500;decreasesby$1,000

C.

-$500;increasesby$2,500

D.

-$500;decreasesby$500

37.

IfAlexuses$800fromhercheckingaccounttopayhercreditcardbalance,herwealth:

A.

increasesby$800.

B.

decreasesby$800.

C.

increasesby$1,600.

D.

doesnotchange.

38.

ThelargeincreaseinhouseholdwealthintheUnitedStatesinthe1990swastheresultof:

A.

ahighsavingrate.

B.

alowsavingrate.

C.

largecapitalgains.

D.

highratesofinflation.

39.

Highratesofsavingtodaycontributeto______inthefuture.

A.

highertaxrates

B.

moreunemployment

C.

ahigherstandardofliving

D.

morecapitalgains

40.

Nationalsavingissavingby:

A.

householdsforretirement.

B.

thegovernment.

C.

householdsandfirms

D.

theentireeconomy.

41.

Anation'ssavingequalsits______incomelessitsspendingon_______.

A.

real;investment

B.

current;currentneeds

C.

nominal;investment

D.

nominal;nettaxes

42.

WhereYisGDP,Cisconsumption,Iisinvestment,Gisgovernmentspending,andthereisnointernationaltrade,nationalsavingequals:

A.

C+I+G.

B.

Y-C-G.

C.

Y+C+G.

D.

Y-C-I.

43.

Nationalsavingisdoneby:

A.

onlyhouseholds.

B.

onlybusinesses.

C.

onlygovernments.

D.

households,businesses,andgovernments.

44.

Nettaxesequaltheamountthatthe:

A.

governmentpaystheprivatesectorplustheamountofprivatesectorpaysthegovernment.

B.

governmentpaystheprivatesectorminustheamounttheprivatesectorpaysthegovernment.

C.

businesssectorpaysthegovernmentminustheamounttheprivatesectorpaysthegovernment.

D.

privatesectorpaysthegovernmentminustheamounttheprivatesectorreceivesfromthegovernment.

45.

Totaltaxesminustransferpaymentsminusgovernmentinterestpaymentsiscalled:

A.

abudgetsurplus.

B.

nettaxes.

C.

abudgetdeficit.

D.

nationalsaving.

46.

Iftotalgovernmenttaxcollectionsequal$200billion,transferpaymentsequal$75billion,andgovernmentinterestpaymentsequal$10billion,thennettaxesequal:

A.

$115billion.

B.

$125billion.

C.

$190billion.

D.

$275billion.

47.

Paymentsbythegovernmenttothepublicforwhichthegovernmentreceivesnocurrentgoodsorservicesinreturnarecalled:

A.

publicsaving.

B.

nettaxes.

C.

transferpayments.

D.

capitallosses.

48.

SocialSecuritybenefits,welfarepayments,andfarmsupportpaymentsareexamplesof:

A.

consumptionspending.

B.

publicinterestpayments.

C.

investmentspending.

D.

transferpayments.

49.

Savingbyhouseholdsandbusinessesiscalled______saving.

A.

private

B.

public

C.

national

D.

aggregate

50.

WhereYisGDP,Cisconsumption,Iisinvestment,Gisgovernmentspending,Tisnettaxes,andthereisnointernationaltrade,privatesavingequals:

A.

C+I+G-T.

B.

Y-T-C.

C.

Y-T-G.

D.

Y–C–I.

51.

Ifnettaxespaidbyhouseholdsincrease:

A.

privatesavingwilldecrease.

B.

privatesavingwillincrease.

C.

publicsavingwilldecrease.

D.

transferpaymentstohouseholdswilldecrease.

52.

Thesavingofthegovernmentsectoriscalled______saving.

A.

private

B.

public

C.

national

D.

aggregate

53.

WhereYisGDP,Cisconsumption,Iisinvestment,Gisgovernmentspending,Tisnettaxes,andthereisnointernationaltrade,publicsavingequals:

A.

T-G.

B.

Y-T-C.

C.

Y+T-G.

D.

Y-C-T.

54.

Anincreaseinnettaxes(taxespaidbytheprivatesectortothegovernmentlesstransferpaymentsandinterestpaymentsmadebythegovernmenttotheprivatesector)will:

A.

increaseprivatesaving.

B.

decreasepublicsaving.

C.

increasepublicsaving.

D.

reduceinvestmentinnewcapitalequipment.

55.

Publicsavingis:

A.

increasedwhenthegovernmentbudgetdeficitrises.

B.

identicaltothegovernmentbudgetsurplus.

C.

lessimportanttonationalsavingthanprivatesaving.

D.

moreimportanttonationalsavingthanprivatesaving.

56.

Whichofthefollowingiscorrect?

A.

Nationalsavingequalsprivatesavingpluspublicsaving.

B.

Publicsavingequalsnationalsavingplusprivatesaving.

C.

Privatesavingequalsnationalsavingpluspublicsaving.

D.

Nationalsavingequalspublicsavingminusprivatesaving.

57.

Theexcessofgovernmentspendingovertaxcollectionsis:

A.

nationalincome.

B.

nationalsaving.

C.

nationalwealth.

D.

thegovernmentbudgetdeficit.

58.

WhereYisGDP,Cisconsumption,Iisinvestment,Gisgovernmentspending,Tisnettaxes,andthereisnointernationaltrade,thegovernmentbudgetdeficitequals:

A.

T-G.

B.

Y-G.

C.

Y+T-G.

D.

G-T.

59.

Publicsavingispositivewhen:

A.

thereisagovernmentbudgetsurplus.

B.

after-taxincomeofhouseholdsandbusinessesislessthanconsumptionexpenditures.

C.

thegovernment’sbudgetisbalanced.

D.

after-taxincomeofhouseholdsandbusinessesisgreaterthanconsumptionexpenditures.

60.

Publicsavingisnegativewhen:

A.

thereisagovernmentbudgetsurplus.

B.

thereisagovernmentbudgetdeficit.

C.

thegovernment'sbudgetisbalanced.

D.

after-taxincomeofhouseholdsandbusinessesisgreaterthanconsumptionexpenditures.

61.

Privatesavingispositivewhen:

A.

thereisagovernmentbudgetsurplus.

B.

thereisagovernmentbudgetdeficit.

C.

thegovernment'sbudgetisbalanced.

D.

after-taxincomeofhouseholdsandbusinessesisgreaterthanconsumptionexpenditures.

62.

Whengovernmentrunsabudgetdeficit,itmakesupthedifferenceby:

A.

issuinggovernmentbonds.

B.

payingdownoutstandingdebt.

C.

increasingtransferpayments.

D.

increasingpublicsaving.

63.

Whenthegovernmentrunsabudgetsurplus,itusesthefundsto:

A.

issuebonds.

B.

paydownoutstandingdebt.

C.

decreasetransferpayments.

D.

decreasepublicsaving.

64.

Whichofthefollowingcontributedtotheturn-aroundintheU.S.governmentbudgetfromasurplusintheearly2000storecorddeficitsbytheendofthedecade?

A.

Anincreaseinhouseholdsaving.

B.

Anincreaseinbusinesssaving.

C.

Anincreaseintaxrevenuesbecauseofarecession.

D.

Anincreaseingovernmentspendingonhomelandsecurityandwars.

65.

Basedonthefollowinginformation,whatistheamountofpublicsaving?

A.

+3,700

B.

+2,500

C.

+200

D.

-300

66.

Supposethefollowinginformationdescribestheeconomy:

Privatesavingequals____;publicsavingequals______;nationalsavingequals____.

A.

100;200;100

B.

100;100;200

C.

200;100;300

D.

200;100;500

67.

Supposethefollowinginformationdescribestheeconomy:

Privatesavingequals____;publicsavingequals______;nationalsavingequals____.

A.

800;200;600

B.

800;200;1,000

C.

1,000;800;1,000

D.

1,500;700;2,700

68.

Ifgovernmentspendingincreasesby$1millionwhilenettaxesareunchanged,then:

A.

publicsavingincreases.

B.

publicsavingdecreases.

C.

publicsavingdoesnotchange.

D.

privatesavingincreases.

69.

Ifhouseholdsavingdecreasesby$4million,businesssavingincreasesby$4million,andthegovernmentbudgetdeficitdecreasesby$4million,thenprivatesaving______andpublicsaving______.

A.

increases;increases

B.

increases;decreases

C.

doesnotchange;increases

D.

doesnotchange;decreases

70.

ThedatabelowdescribetheeconomyofEconland:

PublicsavinginEconlandequals:

A.

-5

B.

5

C.

16

D.

17

71.

Ifintheeconomy,businesssavingequals$240billion,householdsavingequals$15billionandgovernmentsavingequals-$150billion,whatisthevalueofnationalsaving?

A.

$415billion

B.

$265billion

C.

$250billion

D.

$105billion

72.

Ifconsumptionspendingincreasesby$10millionwithnochangesinnettaxes,then:

A.

publicsavingincreases.

B.

publicsavingdecreases.

C.

privatesavingincreases.

D.

privatesavingdecreases.

73.

IntheUnitedStatesfrom1960to2010,thelargestpositivecontributiontonationalsavingwasfrom:

A.

thepublicsector.

B.

thegovernmentbudgetdeficit.

C.

businesssaving.

D.

householdsaving.

74.

Fromamacroeconomicperspective,theproblemoflowhouseholdsavinghasprobablybeenoverstatedbecause:

A.

householdsavingisnotrelatedatalltoaneconomy’sabilitytoaccumulatenewcapital.

B.

householdsavinghasbeenincreasingsteadilyoverthelastthreedecades.

C.

itisnationalsaving,nothouseholdsaving,thatallowsaneconomytoaccumulatenewcapital.

D.

householdsavingrepresentsasmallershareofnationalsavingthandoespublicsaving.

75.

Byinternationalstandards,thehouseholdsavingrateoftheUnitedStates:

A.

hasnoteverreallybeenhigh.

B.

wasextremelyhighuntilthe1980s.

C.

hasalwaysbeenveryhigh.

D.

waslowthroughthe1970sand1980s,butincreasedthroughoutthe1990stobecomeoneofthehighest.

76.

Inaneconomywithoutinternationaltrade,investmentmustequal______saving.

A.

national

B.

private

C.

public

D.

life-cycle

77.

Thethreebroadreasonsforsaving,asidentifiedbyeconomists,relateto:

A.

consumption,investment,andexports.

B.

national,public,andprivateproduction.

C.

thelife-cycle,precaution,andbequests.

D.

capitalgains,capitallosses,anddeficits.

78.

Savingtomeetlong-termobjectives-suchasretirement,collegeattendance,ortopurchaseahome,-iscalled______saving.

A.

public

B.

bequest

C.

precautionary

D.

life-cycle

79.

Savingforprotectionagainstunexpectedsetbacks-suchasthelossofajoboramedicalemergency-iscalled______saving.

A.

public

B.

bequest

C.

precautionary

D.

life-cycle

80.

Savingdoneforthepurposeofleavinganinheritanceiscalled______saving.

A.

public

B.

bequest

C.

precautionary

D.

life-cycle

81.

Whichofthefollowingisanexampleofthelife-cyclemotiveforsaving?

A.

Patputs$400permonthinhis401(k)retirementaccount.

B.

Jordansetsaside$200permonthincaseshehastopayforanewroofforherhouse.

C.

GerryandTerryput$2,000,000inatrustfundthatwillgototheirchildrenwhentheydie.

D.

Chriskeeps$15,000inamoneymarketaccounttopayexpensesincaseheloseshisjob.

82.

Whichofthefollowingisanexampleoftheprecautionarymotiveforsaving?

A.

Patputs$400permonthinhis401(k)retirementaccount.

B.

Jordansetsaside$200permonthincaseshehastopayforanewroofforherhouse.

C.

GerryandTerryput$2,000,000inatrustfundthatwillgototheirchildrenwhentheparentsdie.

D.

Everymonth,Chrisputs$400intohissavingaccountsothathecanbuyanewcarinafewyears.

83.

Whichofthefollowingisanexampleofthebequestmotiveforsaving?

A.

Patputs$400permonthinhis401(k)retirementaccount.

B.

Jordansetsaside$200permonthincaseshehastopayforanewroofforherhouse.

C.

GerryandTerryput$2,000,000inatrustfundthatwillgototheirchildrenwhentheydie.

D.

Chriskeeps$15,000inamoneymarketaccounttopayexpensesincaseheloseshisjob.

84.

FredandWilmajusthadababygirlandwanttomakesuretheysaveenoughinthefuturetosendhertocollege.Theybegintosaveinresponsetothis______reasonforsaving.

A.

life-cycle

B.

bequest

C.

private

D.

precautionary

85.

Bobhasheardrumorsthathisemployerwillbemergingwithanotherfirmandmanyemployeesmaylosetheirjobs,andhewantstobepreparedincaseheloseshisjob.Ifhebeginstosavemoreinresponsetothisrumor,itisa______reasonforsaving.

A.

life-cycle

B.

public

C.

private

D.

precautionary

86.

TedandAlicewanttomakesurethattheirchildrenwillinheritlotsofmoneywhentheydie,sothattheirchildrendonothavetostrugglethewaytheythemselvesdid.Savingmoreinresponsetothisisa______reasonforsaving.

A.

life-cycle

B.

bequest

C.

private

D.

precautionary

87.

ExplanationsforthehighsavingrateinJapanconsistentwiththelife-cyclereasonforsavinginclude:

A.

longlifeexpectanciesandlargedownpaymentsrequiredforhomepurchases.

B.

lifetimeemployment.

C.

thedesiretoleaveresourcestochildrenwhoprovidesupportandattentiontoparentsintheiroldage.

D.

lowunemploymentratesinJapan.

88.

ExplanationsforthehighsavingrateinJapanconsistentwiththebequestreasonforsavinginclude:

A.

longlifeexpectanciesandlargedownpaymentsrequiredforhomepurchases.

B.

lifetimeemployment.

C.

thedesiretoleaveresourcestochildrenwhoprovidesupportandattentiontoparentsintheiroldage.

D.

lowunemploymentratesinJapan.

89.

Otherthingsequal,thecombinationofa______savingrateanda______realinterestratewillresultinthelargestaccumulationofwealthovertime.

A.

high;high

B.

high;low

C.

high;zero

D.

low;high

90.

TheHatfieldsandtheMcCoysbothearn$50,000peryearinrealtermsinthelabormarket,andbothfamiliesareabletoearna25%realinterestrateontheirsavings.Assumethatallinterestispaidoutasincomeinthefollowingyear.Intheyear2010,bothfamiliesbegantosave.TheHatfieldssaved8%oftheirincomeeachyear;theMcCoyssaved10%.In2010,theHatfieldsconsumed______morethantheMcCoys;in2011,theHatfieldsconsumed______thantheMcCoys.

A.

$1,000;about$800more

B.

$2,000;about$250more

C.

$1,000;about$800less

D.

$2,000;about$250less

91.

TheHatfieldsandtheMcCoysbothearn$50,000peryearinrealtermsinthelabormarket,andbothfamiliesareabletoearna5%realinterestrateontheirsavings.Intheyear2010,bothfamiliesbegantosave.TheHatfieldssaved8%oftheirincomeeachyear;theMcCoyssaved10%.In2010,theHatfieldsconsumed______morethantheMcCoys;in2011,theHatfieldsconsumed______thantheMcCoys.

A.

$1,000;about$960less

B.

$2,000;about$960more

C.

$1,000;about$960more

D.

$2,000;about$960less

92.

Totheextentthathouseholdsaretargetsaverswhosavetoreachaspecificgoal,anincreaseintheinterestrate______householdsavingandadecreaseintheinterestrate______householdsaving.

A.

increases;decreases

B.

decreases;increases

C.

doesnotaffect;increases

D.

increases;doesnotaffect

93.

Empiricalevidenceindicatesthathigherrealinterestratesleadto______insavings.

A.

modestincreases

B.

substantialincreases

C.

nochangein

D.

modestdecreases

94.

Psychologicalfactorsthatmayinfluencethesavingrateare______and_______.

A.

therealinterestrate;thedemonstrationeffect

B.

self-controlproblems;thedemonstrationeffect

C.

capitalgains;therealinterestrate

D.

thedesiretoleaveabequest;capitalgains

95.

Theself-controlhypothesissuggeststhatpeople:

A.

basetheirspendingdecisions(andconsequentlytheirsavingdecisions)onspendingdecisionsofothers.

B.

wanttosave,butlackthedisciplinetorefrainfromconsuming.

C.

substantiallydecreasetheirsavingwhentherealinterestrateincreases.

D.

controltheirspendinginordertosavemorewhentherealinterestrateincreases.

96.

Thedemonstrationeffectsuggeststhatpeoplewillsavelesswhenthey

A.

basetheirspendingdecisions(andconsequentlytheirsavingdecisions)onspendingdecisionsofotherswhospendmorethantheydo.

B.

basetheirsavingdecisionsontheirprojectionsofincomeandspendingneedsovertheirlifetime.

C.

recognizethattherealinterestratehasincreased.

D.

controltheirspendinginordertosavemorewhentherealinterestrateincreases.

97.

AnexplanationforthelowsavingrateintheUnitedStatesconsistentwiththedemonstrationeffectincludes:

A.

relativelygenerousgovernmentassistancefortheelderlyandlargedownpaymentsrequiredforhomepurchases.

B.

householdsspendingbeyondtheirmeanstokeepupwithcommunitystandards.

C.

well-developedfinancialmarketsmakingiteasytoborrowagainsthomeequity.

D.

largeandpersistentcapitalgains.

98.

WhichofthefollowinghypothesesisaplausibleexplanationforwhyU.S.householdssavesolittle?

A.

Governmentassistancetotheelderlyhasreducedtheneedforlife-cyclingsaving.

B.

MostAmericanalreadyownhomesand,therefore,havelessneedforlife-cyclesaving.

C.

ThehighlydevelopedfinancialmarketsintheU.S.havereducedtheneedforprecautionarysavingbyAmericans.

D.

Governmentassistancetolow-incomeU.S.householdshasincreasedthedemonstrationeffectsonspendingbythepoor.

99.

Firmswillinvestinnewequipmentwhenever:

A.

theexpectedcostoftheequipmentexceedstheexpectedbenefit.

B.

theexpectedcostoftheequipmentislessthantheexpectedbenefit.

C.

theexpectedcostoftheequipmentisgreaterthanthevalueofthemarginalproductoftheequipment.

D.

publicsavingisgreaterthanprivatesaving.

100.

Theexpectedbenefitofinvestmentequals:

A.

privatesaving.

B.

thevalueofthemarginalproductofcapital.

C.

therealinterestrate.

D.

thepriceofthecapitalgood.

101.

Thecostsofinvestmentdependonthe______andthe_______.

A.

marginalproductofcapital;relativepriceofthefirm'soutput

B.

priceofnewcapitalgoods;realinterestrate

C.

relativepriceofthefirm'soutput;realinterestrate

D.

taxesleviedontherevenuegenerated;relativepriceofthefirm'soutput

102.

Themarginalproductofnewcapitaldependson______and_____.

A.

productivityofcapital;relativepriceofthefirm'soutput

B.

priceofnewcapitalgoods;realinterestrate

C.

relativepriceofthefirm'