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Sukimi29
2010-10-19 0人阅读 举报 0 0 暂无简介

简介:本文档为《15pdf》,可适用于高等教育领域

Chapter:ExchangeRateAdjustmentsandtheBalanceofPaymentsCHAPTEREXCHANGERATEADJUSTMENTSANDTHEBALANCEOFPAYMENTSMULTIPLECHOICEQUESTIONSAccordingtotheabsorptionapproach,theeconomiccircumstancesthatbestwarrantacurrencydevaluationiswherethedomesticeconomyfaces:aUnemploymentcoupledwithapaymentsdeficitbUnemploymentcoupledwithapaymentssurpluscFullemploymentcoupledwithapaymentsdeficitdFullemploymentcoupledwithapaymentssurplusAccordingtotheJcurveeffect,whentheexchangevalueofacountry’scurrencyappreciates,thecountry’stradebalance:aFirstmovestowarddeficit,thenlatertowardsurplusbFirstmovestowardsurplus,thenlatertowarddeficitcMovesintodeficitandstaystheredMovesintosurplusandstaysthereAssumethatBrazilhasaconstantmoneysupplyandthatitdevaluesitscurrencyThemonetaryapproachtodevaluationreasonsthatoneofthefollowingtendstooccurforBrazil:aDomesticpricesrisepurchasingpowerofmoneyfallsconsumptionfallsbDomesticpricesrisepurchasingpowerofmoneyrisesconsumptionrisescDomesticpricesfallpurchasingpowerofmoneyrisesconsumptionfallsdDomesticpricesfallpurchasingpowerofmoneyrisesconsumptionrisesAccordingtotheMarshallLernerapproach,acurrencydepreciationwillbestleadtoanimprovementonthehomecountry’stradebalancewhenthe:aHomedemandforimportsisinelasticforeignexportdemandisinelasticbHomedemandforimportsisinelasticforeignexportdemandiselasticcHomedemandforimportsiselasticforeignexportdemandisinelasticdHomedemandforimportsiselasticforeignexportdemandiselasticChapter:ExchangeRateAdjustmentsandtheBalanceofPaymentsAssumeaneconomyoperatesatfullemploymentandfacesatradedeficitAccordingtotheabsorptionapproach,currencydevaluationwillimprovethetradebalanceifdomestic:aInterestratesrise,thusencouraginginvestmentspendingbIncomerises,thusstimulatingconsumptioncOutputfallstoalowerleveldSpendingiscut,thusfreeingresourcestoproduceexportsAnappreciationoftheUSdollartendsto:aDiscourageforeignersfrommakinginvestmentsintheUnitedStatesbDiscourageAmericansfrompurchasingforeigngoodsandservicescIncreasethenumberofdollarsthatcouldbeboughtwithforeigncurrenciesdDiscourageAmericansfromtravelingoverseasTheMarshallLernerconditiondealswiththeimpactofcurrencydepreciationon:aDomesticincomebDomesticabsorptioncPurchasingpowerofmoneybalancesdRelativepricesAccordingtotheJcurveconcept,whichofthefollowingisfalseThattheeffectsofacurrencydepreciationonthebalanceofpaymentsare:aTransmittedprimarilyviatheincomeadjustedmechanismbLikelytobeadverseornegativeintheshortruncInthelongrunpositive,givenfavorableelasticityconditionsdInfluencedbyoffsettingdevaluationsmadebyothercountriesWhichofthefollowingistruefortheJcurveeffectIt:aAppliestotheinterestrateeffectsofcurrencydepreciationbAppliestotheincomeeffectsofcurrencydepreciationcSuggeststhatdemandtendstobemostelasticoverthelongrundSuggeststhatdemandtendstobeleastelasticoverthelongrunAmericancitizensplanningavacationabroadwouldwelcome:aAppreciationofthedollarbDepreciationofthedollarcHigherwagesextendedtoforeignworkersdLowerwagesextendedtoforeignworkersAssumetheCanadiandemandelasticityforimportsequals,whiletheforeigndemandelasticityforCanadianexportsequalsRespondingtoatradedeficit,supposetheCanadiandollardepreciatesbypercentForCanada,thedepreciationwouldleadtoa(n):aWorseningtradebalancealargerdeficitbImprovingtradebalanceasmallerdeficitcUnchangedtradebalancedNoneoftheaboveChapter:ExchangeRateAdjustmentsandtheBalanceofPaymentsFromtotheUSdollardepreciatedoverpercentagainsttheyen,yetJapaneseexportpricestoAmericansdidnotcomedownthefullextentofthedollardepreciationThisisbestexplainedby:aPartialcurrencypassthroughbCompletecurrencypassthroughcPartialJcurveeffectdCompleteJcurveeffectBecauseoftheJcurveeffectandpartialcurrencypassthrough,adepreciationofthedomesticcurrencytendstoincreasethesizeofa:aTradesurplusintheshortrunbTradesurplusinthelongruncTradedeficitintheshortrundTradedeficitinthelongrunAccordingtotheMarshallLernercondition,acurrencydepreciationisleastlikelytoleadtoanimprovementinthehomecountry’stradebalancewhen:aHomedemandforimportsisinelasticandforeignexportdemandisinelasticbHomedemandforimportsiselasticandforeignexportdemandisinelasticcHomedemandforimportsisinelasticandforeignexportdemandiselasticdHomedemandforimportsiselasticandforeignexportdemandiselasticIfforeignmanufacturerscutmanufacturingcostsandprofitmarginsinresponsetoadepreciationintheUSdollar,theeffectoftheseactionsisto:aShortentheamountoftimeinwhichthedepreciationleadstoasmallertradedeficitbShortentheamountoftimeinwhichthedepreciationleadstoasmallertradesurpluscLengthentheamountoftimeinwhichthedepreciationleadstoasmallertradedeficitdLengthentheamountoftimeinwhichthedepreciationleadstoasmallertradesurplusTheextenttowhichachangeintheexchangerateleadstochangesinimportandexportpricesisknownas:aTheJcurveeffectbTheMarshallLernereffectcTheabsorptioneffectdPassthrougheffectCompletecurrencypassthroughariseswhenapercentdepreciationinthevalueofthedollarcausesUS:aImportpricestofallbypercentbImportpricestorisebypercentcExportpricestorisebypercentdExportpricestorisebypercentWhichapproachanalyzesanation’sbalanceofpaymentsintermsofmoneydemandandmoneysupplyaExpendituresapproachbAbsorptionapproachcElasticitiesapproachdMonetaryapproachChapter:ExchangeRateAdjustmentsandtheBalanceofPaymentsTheJcurveeffectimpliesthatfollowingacurrencyappreciation,acountry’stradebalance:aWorsensbeforeitimprovesbContinuallyworsenscImprovesbeforeitworsensdContinuallyimprovesWhichanalysisconsiderstheextentbywhichforeignanddomesticpricesadjusttoachangeintheexchangerateintheshortrun:aMonetaryanalysisbAbsorptionanalysiscExpendituresanalysisdPassthroughanalysisTheshorterthecurrencypassthroughperiod,therequiredforcurrencydepreciationtohavetheintendedeffectonthetradebalanceaShorterthetimeperiodbLongerthetimeperiodcLargerthespendingcutdSmallerthespendingcutAssumethatFordMotorCompanyobtainsallofitsinputsintheUnitedStatesandallofitscostsaredenominatedindollarsAdepreciationofthedollar’sexchangevalue:aEnhancesitsinternationalcompetitivenessbWorsensitsinternationalcompetitivenesscDoesnotaffectitsinternationalcompetitivenessdNoneoftheaboveAssumethatFordMotorCompanyobtainssomeofitsinputsinMexico(foreignsourcing)AsthepesobecomesalargerportionofFord’stotalcosts,adollardepreciationleadstoa(an)inthepesocostofaFordvehicleanda(an)inthedollarcostofaFordcomparedtothecostchangesthatoccurwhenallinputcostsaredollardenominatedaDecrease,increasebIncrease,decreasecDecrease,decreasedIncrease,increaseGivenfavorableelasticityconditions,adepreciationoftheliratendstoresultin:aLowerpricesofimportedproductsforItalybHigherpricesofimportedproductsforItalycAlargertradedeficitforItalydAsmallertradesurplusforItalyAccordingtotheJcurveeffect,anappreciationoftheyensexchangevaluehas:aNoimpactontheJapanesetradebalanceintheshortrunbNoimpactontheJapanesetradebalanceinthelongruncAnimmediatenegativeeffectontheJapanesetradebalancedAnimmediatepositiveeffectontheJapanesetradebalanceChapter:ExchangeRateAdjustmentsandtheBalanceofPaymentsTheabsorptionapproachsuggeststhatwhichofthefollowingcausesatradedeficittodecreasefollowingcurrencydepreciationaAdeclineindomesticinterestratesbAriseindomesticimportscAriseingovernmentspendingdAdeclineindomesticabsorptionTheabsorptionapproachtocurrencydepreciationisrepresentedbywhichofthefollowingequationsaB=Y–AbY=CIG(X–M)cIX=SMdS–I=X–MThetimeperiodthatittakesforcompaniestoincreaseoutputofcommoditiesforwhichdemandhasincreasedduetocurrencydepreciationisknownasthe:aRecognitionlagbDecisionlagcReplacementlagdProductionlagAccordingtotheabsorptionapproach(B=Y–A),currencydevaluationimprovesanation’stradebalanceif:aYincreasesandAincreasesbYdecreasesandAdecreasescYincreasesandorAdecreasesdYdecreasesandorAincreasesTheeffectofcurrencydepreciationonthepurchasingpowerofmoneybalancesandtheresultingimpactondomesticexpendituresisemphasizedbythe:aAbsorptionapproachbMonetaryapproachcFiscalapproachdElasticityapproachTRUEFALSEQUESTIONSTFCurrencydevaluationisinitiatedbygovernmentalpolicyratherthanthefreemarketforcesofsupplyanddemandTFIfacurrency’sexchangerateisundervalued,agovernmentwouldlikelyinitiateactionstodevaluethecurrencyTFThepurposeofcurrencyrevaluationistocauseanappreciationinacurrency’sexchangevalueChapter:ExchangeRateAdjustmentsandtheBalanceofPaymentsTFAssumethatGeneralMotorsemployslaborandmaterials,whosecostsaredenominatedindollars,intheproductionofautomobilesIfthedollar’sexchangevalueappreciatesbypercentagainsttheyen,theyendenominatedcostofaGMvehiclefallsbypercentTFAppreciationofthedollar’sexchangevalueworsenstheinternationalcompetitivenessofBoeingInc,whereasadollardepreciationimprovesitsinternationalcompetitivenessTFAccordingtotheabsorptionapproach,currencydevaluationbestimprovesacountry’stradebalancewhenitseconomyisatmaximumcapacityTFAsyendenominatedcostsbecomealargerportionofFord’stotalcosts,adollarappreciationresultsinasmallerincreaseintheyendenominatedcostofaFordautothanoccurswhenallinputcostsaredollardenominatedTFByincreasingrelativeUSproductioncosts,adollardepreciationtendstoincreaseUSexportpricesinforeigncurrencyterms,whichresultsinanincreaseinthequantityofUSgoodsexportedabroadTFTheelasticityapproachtocurrencydepreciationemphasizestherelativepriceeffectsofdepreciationandsuggeststhatdepreciationbestimprovesacountry’stradebalancewhentheelasticitiesofdemandforthecountry’simportsandexportsarehighTFTheabsorptionapproachtocurrencydevaluationdealswiththeincomeeffectsofdevaluationwhiletheelasticityapproachtodevaluationdealswiththepriceeffectsofdevaluationTFAccordingtotheabsorptionapproach,anincreaseindomesticexpendituresmustoccurforcurrencydevaluationtopromotebalanceoftradeequilibriumTFThemonetaryapproachemphasizestheeffectsofcurrencydepreciationonthepurchasingpowerofmoney,andtheresultingimpactondomesticexpenditurelevelsTFTheMarshallLernerconditionsuggeststhatifthesumofacountry’selasticityofdemandforimportsandtheforeignelasticityofdemandforthecountry’sexportsexceeds,anappreciationofthecountry’sexchangeratewillworsenitsbalanceoftradeTFEmpiricalresearchsuggeststhatmostcountries’priceelasticitiesofdemandforimportsandexportsareveryinelastic,suggestingthatcurrencydepreciationwouldresultinaworseningofacountry’sbalanceoftradeTFTheJcurveeffectimpliesthatintheshortrunacurrencydepreciationwillresultinabalanceoftradesurplusforthehomecountryAstimepasses,however,thehomecountry’sbalanceoftradewillmovetowarddeficitTFSupposethedollarappreciatespercentagainsttheSwissfrancAccordingtotheJcurveeffect,theUSbalanceoftradewillinitiallyworsen,butthenimproveastimepassesTFTheextenttowhichchangingcurrencyvaluesresultinchangingpricesofimportsandexportsisknownastheJcurveeffectChapter:ExchangeRateAdjustmentsandtheBalanceofPaymentsTFCompletecurrencypassthroughsuggeststhatifthedollar’sexchangevaluedepreciatesbypercent,importswillbecomepercentmoreexpensivetoAmericanswhileUSexportswillbecomepercentcheapertoforeignersTFPartialcurrencypassthroughimpliesthatifthedollar’sexchangevalueappreciatesbypercent,importswouldbecome,say,percentmoreexpensivetoAmericanswhileUSexportswouldbecome,say,percentcheapertoforeignersTFSupposetheUSeconomyisoperatingatfullcapacityandthedollar’sexchangevaluedepreciatesAccordingtotheabsorptionapproach,theUnitedStateswouldhavetoacceptreductionsindomesticspendingiftheUStradebalanceistoimproveasaresultofthedepreciationTERMEXPLANATIONSJcurveeffectsCurrencypassthroughAbsorptionapproachElasticityapproachMonetaryapproachMarshallLernerconditionANALYSISANDCALCULATETableHypotheticalCostsofProducinganAutomobileforToyotaIncofJapanCostComponentYenCostDollarEquivalentCostLabor,,MaterialsSteel,Othermaterials,,Totalmaterialcosts,,Othercosts,Totalcosts,,Chapter:ExchangeRateAdjustmentsandtheBalanceofPayments()AssumingthatToyotaobtainsallinputsfromJapanesesuppliersandthattheyendollarexchangerateisyenperdollarCalculatethedollarequivalentcostofaToyotaautomobile()AssumethatToyotaIncobtainsallofitsautomobileinputsfromJapanesesuppliersIftheyen’sexchangevalueappreciatesfromyen=$toyen=$,thengivetheyencostofaToyotaautomobile()AssumethatToyotaIncobtainsallofitsautomobileinputsfromJapanesesuppliersIftheyen’sexchangevalueappreciatesfromyen=$toyen=$,calculatethedollarequivalentcostofaToyotaautomobile()AssumethatToyotaIncimportssteelfromUSsuppliers,whosecostsaredenominatedindollars,whileallotherinputsareobtainedfromJapanesesupplierswhosecostsaredenominatedinyenIftheyen’sexchangevalueappreciatesfromyen=$toyen=$,calculatetheyencostofaToyotaautomobile()AssumethatToyotaIncimportssteelfromUSsuppliers,whosecostsaredenominatedindollars,whileallotherinputsareobtainedfromJapanesesupplierswhosecostsaredenominatedinyenIftheyen’sexchangevalueappreciatesfromyen=$toyen=$,calculatethedollarequivalentcostofaToyotaautomobileAssumetheUSexports,computersatapriceof$,eachandimportsBritishautosatpriceof£,eachAssumethatthedollarpoundexchangerateisdollarsperpound()Calculate,indollarterms,theUSexportreceipt,importpayment,andtradebalancepriortoadepreciationofthedollar’sexchangevalue()Supposethedollar’sexchangevaluedepreciatesbypercentAssumingthatthepriceelasticityofdemandforUSexportsequalsandthepriceelasticityofdemandforUSimportsequals,calculatetheUSexportreceipts,importpayments,andtradebalanceDoesthedollarappreciationimproveorworsentheUStradebalanceWhy()NowassumethatthepriceelasticityofdemandforUSexportsequalsandthepriceelasticityofdemandforUSimportsequalsDoesthischangetheoutcomeWhyANSWERQUESTIONSHowdoexchangeratefluctuationsaffectrelativecostsHowdoesacurrencydepreciationordevaluationaffectanation’sbalanceoftradeWhatismeantbytheMarshallLernerconditionHowdoestheJcurveeffectrelatetothetimepathofcurrencydepreciationordevaluationAccordingtotheabsorptionapproach,doesitmakeanydifferencewhetheranationdevaluesitscurrencyHowcandevaluationinducedchangesinhouseholdmoneybalancespromotepaymentsequilibriumChapter:ExchangeRateAdjustmentsandtheBalanceofPaymentsANSWERSANSWERSTOMULTIPLECHOICEQUESTIONSabaddadacabacacdbdcdaaabddadcbANSWERSTOTRUEFALSEQUESTIONSTFTTTFTFTTFTTFFTFTFTANSWERSTOTERMEXPLANATIONSAfteradevaluation,thebalanceoftradefallsforawhilebeforeincreasingTheextenttowhichchangingcurrencyvaluesleadtochangesinimportandexportpricesAtheoryofthebalanceoftradethatemphasizeshowdomesticspendingondomesticgoodschangesrelativetodomesticoutputAtheoryofthebalanceoftradethatemphasizestherelativepriceeffectsofdepreciationandsuggeststhatdepreciationworksbestwhendemandelasticitiesarehighAtheoryofthebalanceoftradethatemphasizestheeffectsdepreciationhasonthepurchasingpowerofmoneyandtheresultingimpactondomesticexpenditurelevelstheconditionunderwhicharealdepreciationleadstoanincreaseinnetexportsANSWERSTOANALYZEANDCALCULATE()$,(),,yen()$,(),,yen()$,Chapter:ExchangeRateAdjustmentsandtheBalanceofPayments()Exportreceiptandimportpaymentisthesame,equals$,,,andtradebalanceis()Exportreceiptis$,,,importpaymentis$,,,andtradebalanceis,,ThedollarappreciationimprovestheUStradebalance,becausethatUSdemandelasticityforimportsplustheBritishdemandelasticityforUSexportsequals,exceeding()Yes,becauseUSdemandelasticityforimportsplustheBritishdemandelasticityforUSexportsequals,lessthanANSWERSTOANSWERQUESTIONSImpactofappreciationordepreciationoncostsdependsontheproportionofinputspricedinforeignvsdomesticcurrencyAsforeigncurrencydenominatedcostsriseasaproportionoftotalcosts,exchangeratechangeshavelesseffectontheforeigncurrencypriceandmoreeffectonthedomesticpriceIfforeigncurrencycostsareasmallpartoftotalcosts,exchangeratechangeshavemoreimpactonforeigncurrencypriceoftheproductandlessondomesticpriceThroughitsimpactonrelativeprices,incomes,andpurchasingpowerofmoneybalanc

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