答案2 MACROECONOMICS.doc

CMA-CFM PART 1 the money supply. CHAPTER 2 MACROECONOMICS Unofficial Answers 7. /b/ Both reducing the reserve requirement and lowering the discount rate will expand monetary policy by increasing the money supply. A, C, and D are incorrect because raising the reserve requirement and/or the discount rate will constrict monetary policy.  l. /c/ Used and second-hand sales are excluded from GNP. The valuation is measured at the transactions fair market value. 8. /d/ The governments borrowing to finance the national debt can lead to higher interest rates, decreasing private investment.  2. /b/ When (aggregate) demand equals (aggregate) supply and (intended) saving equals (intended) investment, income and employment tend towards an equilibrium level. A is incorrect because there is not necessarily a change in inventory levels. C is incorrect because full employment is never achieved. D is incorrect because at equilibrium, savings equals investment, not consumption. 9. /a/ Many monetarists, including Milton Friedman, argue in favor of a constant money growth rate rule. Answers B, C and D are incorrect statements with respect to monetarists views in general. 10. /d/ Only Answer D of the choices given would lead to an increase in the money supply. Policies described in Answers A, B and C would be expected to result in a decrease in the money supply.  3. /d/ Structural unemployment is created by changes in the economy creating a mismatch in the supply and demand for labor. C is incorrect because fictional unemployment includes the normal turnover of labor which exists in a dynamic economy. 11. /a/ Answer A correctly describes the reserve ratio ~ the specified percentage of a commercial banks deposit liabilities that must be kept on deposit and not loaned out. Answers B, C and D do not describe the reserve ratio.  4. /d/ Only answer D is an assumption of Keynesian theory. Answers A and B are basic assumptions of the monetarists, not Keynesians. Answer C is incorrect b