MACROCHAPTER8TESTQUESTIONS宏观经济学答案.docx

MACRO CHAPTER 8 TEST QUESTIONSChapter 08Saving, Capital Formation, and Financial Markets Multiple Choice Questions1.Saving equals:A.current spending minus current income.B.wealth minus assets.C.assets minus liabilities.D.current income minus spending on current needs.2.Current income minus spending on current needs equals:A.saving.B.wealth.C.transfers.D.investment.3.The saving rate equals saving divided by:A.wealth.B.assets.C.liabilities.D.income.4.Pat earns $1,000 per week and spends $850 per week on living expenses, puts $50 in a savings account, and buys $100 worth of shares in a stock mutual fund. Pats saving is _, and Pats saving rate is _.A.$50; 5.0%B.$50; 5.9%C.$100; 10%D.$150; 15%5.Chris earns $1,500 per week and spends $1,000 per week on living expenses, puts $200 in a savings account, and buys $300 worth of shares in a stock mutual fund. Chriss saving is _, and Chriss saving rate is _.A.$200; 13.3%B.$200; 20.0%C.$300; 20.0%D.$500; 33.3%6.Wealth equals:A.current income minus spending on current needs.B.assets minus liabilities.C.saving minus investment.D.investment minus saving.7.Wealth is the same as:A.net worth.B.assets.C.capital gains.D.savings.8.Assets are:A.current income minus spending on current needs.B.stocks, bonds, and credit card balances.C.saving minus investment.D.anything of value one owns.9.Liabilities are:A.current income minus spending on current needs.B.the debts one owes.C.saving minus investment.D.anything of value one owns.10.Which of the following is an asset of a family?A.Student loanB.MortgageC.Unpaid credit card balanceD.Checking account balance11.Which of the following is a liability of a family?A.Checking account balanceB.Share of stockC.HouseD.MortgageTaylor has the following assets and liabilities:12.What is Taylors wealth?A.$105,000B.$107,000C.$111,000D.$419,00013.What is the value of Taylors assets?A.$308,000B.$416,000C.$419,000D.$422,00014.What is the value of Taylors liabilities?A.$300,000B.$303,000C.$308,000D.$311,00015.Suppose that Taylor receives a $10,000 bonus from her employer. If she puts that money toward her mortgage, her wealth would _; if she puts that money in her checking account, her wealth would _.A.increase to $121,000; decrease to $101,000B.increase to $115,000; decrease to $95,000C.increase to $121,000; increase to $121,000D.increase to $115,000; increase to $115,00016.Jordan has the following assets and liabilities: Jordans wealth is _, the value of Jordans assets is _, and the value of Jordans liability is _.A.$107,000; $213,000; $100,000B.$109,000; $213,000; $104,000C.$111,000; $213,000; $100,000D.$213,000; $317,000; $104,00017.Jordan has the following assets and liabilities: Suppose that Jordan wins $100,000 in the lottery. If he uses that money to pay off his mortgage, his wealth would _; if he puts that money in his checking account, his wealth would _.A.increase to $209,000; not changeB.not change; increase to $207,000C.increase to $209,000; increase to $209,000D.increase to $207,000; not change18.Mos current income is $100 more per month than his current consumption needs. He decides to use the $100 to reduce his credit card debt. As a result, his:A.liabilities will decrease and his wealth will increase.B.liabilities and his wealth will decrease.C.assets will decrease and his wealth will increase.D.assets and his wealth will increase.19.A measure defined at a point in time is called a(n) _ variable.A.stockB.nominalC.aggregateD.flow20.A flow is a measure defined:A.per unit of time.B.at a point in time.C.in real terms.D.in nominal terms.21.Which of the following is a flow?A.SavingB.WealthC.AssetsD.Money22.Which of the following is a stock?A.SavingB.IncomeC.ConsumptionD.Wealth23.Saving $100 will:A.increase wealth by $100.B.increase wealth by $100 only if the $100 is used to purchase an asset.C.increase wealth by $100 only if the $100 is used to repay a debt.D.decrease wealth by $100.24.Saving is a(n) _ and wealth is a(n) _.A.stock; flowB.flow; stockC.asset; liabilityD.liability; asset25.The Boy Scouts have so far sold 100 tickets for their upcoming raffle, but they sell an additional 12 tickets every day. The _ is a stock variable, and the _ is a flow variable.A.number of tickets sold each day; number of tickets sold so farB.number of tickets sold so far; total number of tickets sold by the time of the raffleC.number of tickets sold each day; total number of tickets availableD.total number of tickets sold by the time of the raffle; number of tickets sold each day26.The Boy Scouts have so far sold 100 tickets for their upcoming raffle, but they sell a constant additional 12 tickets every day. After three more days of selling tickets, the stock of tickets sold will be _, and the flow of tickets sold will be _.A.136; 12B.36; 12C.100; 36D.136; 3627.The stock of wealth increases more rapidly the faster the flow of _.A.incomeB.savingC.moneyD.assets28.If Dylan saves $50 per week, then Dylans _ will increase by $50 per week.A.investmentB.consumptionC.taxesD.wealth29.If Gerry saves $500 per month, then Gerrys _ will increase by _.A.wealth; $500 only if he has no debtB.income; $500 only if he buys additional assetsC.wealth; $500D.wealth; $500 only if he buys additional assets30.Capital gains are _, and capital losses are _.A.increases in the flow of investment; decreases in the flow of investmentB.increases in the flow of saving; decreases in the flow of savingC.additions to plant and equipment; the destruction of plant and equipmentD.increases in the value of existing assets; decreases in the value of existing assets31.Elaine owns a beautiful diamond ring she purchased for $2,500. When she has it appraised she learns that it is now worth $3,000. Based on this information:A.Elaines saving this year has increased by $500.B.Elaines saving this year has decreased by $500.C.Elaine has experienced a $500 capital gain.D.Elaines wealth is unchanged.32.Jay owns a classic car he purchased for $50,000. At a car rally he is offered $75,000 for the car by a knowledgeable classic car enthusiast. Based on this information:A.Jays saving this year has increased by $25,000.B.Jays saving this year has decreased by $25,000.C.Jay has experienced a $25,000 capital gain.D.Jays wealth is unchanged.33.Steve uses $300 from his paycheck to pay off his credit card balance. Based on this information:A.Steves saving has increased by $300.B.Steves saving has decreased by $300.C.Steves wealth is unchanged.D.Steve has a capital loss of $300.34.Steve takes $500 from his paycheck and uses it to purchase U.S. Savings Bonds. Based on this information:A.Steves saving has increased by $500.B.Steves saving has decreased by $500.C.Steve has a capital gain of $500.D.Steves wealth is unchanged.35.The change in wealth during a period equals:A.saving + capital gains - capital losses.B.saving - capital gains + capital losses.C.saving - investment + capital gains - capital losses.D.public saving + private saving - transfers.36.If Alex deposits $1,000 from her paycheck into her checking account and, at the same time, increases her credit card balance by $1,500, then her saving is _, and her wealth _.A.+$1,000; decreases by $500B.+$500; decreases by $1,000C.-$500; increases by $2,500D.-$500; decreases by $50037.If Alex uses $800 from her checking account to pay her credit card balance, her wealth:A.increases by $800.B.decreases by $800.C.increases by $1,600.D.does not change.38.The large increase in household wealth in the United States in the 1990s was the result of:A.a high saving rate.B.a low saving rate.C.large capital gains.D.high rates of inflation.39.High rates of saving today contribute to _ in the future.A.higher tax ratesB.more unemploymentC.a higher standard of livingD.more capital gains40.National saving is saving by:A.households for retirement.B.the government.C.households and firms.D.the entire economy.41.A nations saving equals its _ income less its spending on _.A.real; investmentB.current; current needsC.nominal; investmentD.nominal; net taxes42.Where Y is GDP, C is consumption, I is investment, G is government spending, and there is no international trade, national saving equals:A.C + I + G.B.Y - C - G.C.Y + C + G.D.Y - C - I.43.National saving is done by:A.only households.B.only businesses.C.only governments.D.households, businesses, and governments.44.Net taxes equal the amount that:A.the government pays the private sector plus the amount of private sector pays the government.B.the government pays the private sector minus the amount the private sector pays the government.C.the business sector pays the government minus the amount the private sector pays the government.D.the private sector pays the government minus the amount the private sector receives from the government.45.Total taxes minus transfer payments minus government interest payments is called:A.a budget surplus.B.net taxes.C.a budget deficit.D.national saving.46.If total government tax collections equal $200 billion, transfer payments equal $75 billion, and government interest payments equal $10 billion, then net taxes equal:A.$115 billion.B.$125 billion.C.$190 billion.D.$275 billion.47.Payments by the government to the public for which the government receives no current goods or services in return are called:A.public saving.B.net taxes.C.transfer payments.D.capital losses.48.Social Security benefits, welfare payments, and farm support payments are examples of:A.consumption spending.B.public interest payments.C.investment spending.D.transfer payments.49.Saving by households and businesses is called _ saving.A.privateB.publicC.nationalD.aggregate50.Where Y is GDP, C is consumption, I is investment, G is government spending, T is net taxes, and there is no international trade, private saving equals:A.C + I + G - T.B.Y - T - C.C.Y -T - G.D.Y - C - I.51.If net taxes paid by households increase:A.private saving will decrease.B.private saving will increase.C.public saving will decrease.D.transfer payments to households will decrease.52.The saving of the government sector is called _ saving.A.privateB.publicC.nationalD.aggregate53.Where Y is GDP, C is consumption, I is investment, G is government spending, T is net taxes, and there is no international trade, public saving equals:A.T - G.B.Y - T - C.C.Y +T - G.D.Y - C - T.54.An increase in net taxes (taxes paid by the private sector to the government less transfer payments and interest payments made by the government to the private sector) will:A.increase private saving.B.decrease public saving.C.increase public saving.D.reduce investment in new capital equipment.55.Public saving is:A.increased when the government budget deficit rises.B.identical to the government budget surplus.C.less important to national saving than private saving.D.more important to national saving than private saving.56.Which of the following is correct?A.National saving equals private saving plus public saving.B.Public saving equals national saving plus private saving.C.Private saving equals national saving plus public saving.D.National saving equals public saving minus private saving.57.The excess of government spending over tax collections is:A.national income.B.national saving.C.national wealth.D.the government budget deficit.58.Where Y is GDP, C is consumption, I is investment, G is government spending, T is net taxes, and there is no international trade, the government budget deficit equals:A.T - G.B.Y - G.C.Y + T - G.D.G - T.59.Public saving is positive when:A.there is a government budget surplus.B.after-tax income of households and businesses is less than consumption expenditures.C.the governments budget is balanced.D.after-tax income of households and businesses is greater than consumption expenditures.60.Public saving is negative when:A.there is a government budget surplus.B.there is a government budget deficit.C.the governments budget is balanced.D.after-tax income of households and businesses is greater than consumption expenditures.61.Private saving is positive when:A.there is a government budget surplus.B.there is a government budget deficit.C.the governments budget is balanced.D.after-tax income of households and businesses is greater than consumption expenditures.62.When the government runs a budget deficit, it makes up the difference by:A.issuing bonds.B.paying down outstanding debt.C.increasing transfer payments.D.increasing public saving.63.When the government runs a budget surplus, it uses the funds to:A.issue bonds.B.pay down outstanding debt.C.decrease transfer payments.D.decrease public saving.64.Which of the following contributed to the turn-around in the government budget from a surplus in the early 2000s to record deficits by the end of the decade?A.An increase in household saving.B.An increase in business saving.C.An increase in tax revenues because of a recession.D.An increase in government spending on homeland security and wars.65.Based on the following information, what is the amount of public saving?A.+3,700B.+2,500C.+200D.-30066.Suppose the following information describes the economy:Private saving equals _; public saving equals _; national saving equals _.A.100; 200; 100B.100; 100; 200C.200; 100; 300D.200; 100; 50067.Suppose the following information describes the economy: Private saving equals _; public saving equals _; national saving equals _.A.800; 200; 600B.800; 200; 1,000C.1,000; 800; 1,000D.1,500; 700; 2,70068.If government spending increases by $1 million while net taxes are unchanged, then:A.public saving increases.B.public saving decreases.C.public saving does not change.D.private saving increases.69.If household saving decreases by $4 million, business saving increases by $4 million, and the government budget deficit decreases by $4 million, then private saving _ and public saving _.A.increases; increasesB.increases; decreasesC.does not change; increasesD.does not change; decreases70.The data below describe the economy of Econland: Public saving in Econland equals:A.-5B.5C.16D.1771.If in the economy, business saving equals $240 billion, household saving equals $15 billion and government saving equals -$150, what is the value of national saving?A.$415 billionB.$265 billionC.$250 billionD.$105 billion72.If consumption spending increases by $10 million with no changes in net taxes, then:A.public saving increases.B.public saving decreases.C.private saving increases.D.private saving decreases.73.In the United States from 1960 to 2009, the largest positive contribution to national saving was from:A.the public sector.B.the government budget deficit.C.business saving.D.household saving.74.From a macroeconomic perspective, the problem of low household saving has probably been overstated because:A.household saving is not related at all to an economys ability to accumulate new capital.B.household saving has been increasing steadily over the last three decades.C.it is national saving, not household saving, that allows an economy to accumulate new capital.D.household saving represents a smaller share of national saving than does public saving.75.By international standards, the household saving rate of the United States:A.has not ever really been high.B.was extremely high until the 1980s.C.has always been very high.D.was low through the 1970s and 1980s, but increased throughout the 1990s to become one of the highest.76.Household saving in the U.S.:A.is low relative to previous periods, but approximately equal to the rate in other countries.B.is low relative to other countries, but has increased during the 1990s.C.had decreased since the 1960s, but, because the economy was so strong during the 1990s, has recently increased.D.is low relative to other countries and has declined since the 1960s.77.The three broad reasons for saving identified by economists include _ reasons.A.consumption, investment, and exportsB.national, public, and privateC.life-cycle, precautionary, and bequestD.capital gains, capital losses, and deficits78.Saving to meet long-term objectivessuch as retirement, college attendance, or to purchase a home,is called _ saving.A.publicB.bequestC.precautionaryD.life-cycle79.Saving for protection against unexpected setbackssuch as the loss of a job or a medical emergencyis called _ saving.A.publicB.bequestC.precautionaryD.life-cycle80.