国际经济学题库1604127.doc

International Economics, 8e (Krugman) Chapter 19 Macroeconomic Policy and Coordination Under Floating Exchange Rates 19.1 The Case for Floating Exchange Rates 1) Advocates of floating rate suggested it is favorable for economies for the following reasons EXCEPT A) it discourages attack from foreign exchange speculators because of the fact that exchange rate adjustment is immediate. B) it helps stabilize the shock effect on unemployment in case of economic changes such as fall in export demand. C) it automatically matches the domestic inflation with ongoing foreign inflation. D) it gives every country the opportunity to guide its own monetary conditions at home. E) it brings the LR exchange rate to the level predicted by PPP without government policy decisions. Answer: C Question Status: Previous Edition 2) Which of the following is NOT a result of a temporary fall in foreign demand on one countrys exports under floating exchange rate? A) The DD curve shifts to the left due to reduction of aggregate demand. B) The AA curve shifts downwards due to reduction of money supply. C) a fall in aggregate output D) depreciation in home countrys currency E) None of the above. Answer: B Question Status: Previous Edition 3) Which of the following IS a result of a permanent fall in foreign demand on one countrys exports under floating exchange rate? A) The DD curve shifts to the left due to reduction of aggregate demand. B) The AA curve shifts upwards due to the increased expected long-run exchange rate. C) a reduction in output by a smaller degree compared to temporary fall in demand D) depreciation in home countrys currency E) All of the above. Answer: E Question Status: Previous Edition 4) Which of the following is/are INCORRECT (Choose all that apply.): An argument against floating exchange rates is that A) a fixed rate automatically prevents instability in the domestic money market