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International Monetary Financial Economics 1St Edition Daniels Test Bank Full Chapter PDF
International Monetary Financial Economics 1St Edition Daniels Test Bank Full Chapter PDF
3) If you wanted to understand how an economy grew without looking at the impact of inflation,
you should use ________ to compare different times within the economy.
A) real GDP
B) nominal GDP
C) the CPI
D) the GDP deflator
Answer: A
4) If real GDP were $9300 and nominal GDP were $11,160, then the GDP deflator would be
A) 1.2.
B) 120.
C) 1860.
D) 1.86.
Answer: A
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7) The real income identity includes all of the following EXCEPT
A) real exports.
B) real savings.
C) real consumption.
D) real net taxes.
Answer: A
9) For any consumer, the sum of their marginal propensity to consume, their marginal propensity
to save, and their marginal propensity to import would always be
A) one.
B) less than one.
C) greater than one.
D) negative.
Answer: A
10) If the expected inflation rate were 2.5% and the nominal interest rate were 6%, then the real
interest rate must be
A) 3.5%.
B) 1.5%.
C) 2.4%.
D) 8.5%.
Answer: A
12) In an economy, the portion of household spending that occurs independent of household
income is known as
A) autonomous consumption.
B) dissavings.
C) the marginal propensity to consume.
D) the consumption function.
Answer: A
2
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13) A rise in the nominal interest rate would cause
A) a decline in desired investment spending.
B) a downward shift in aggregate desired expenditures.
C) a movement along the IS curve.
D) all of the above.
Answer: D
16) Which of the following is not a motive for holding real money balances?
A) the savings motive
B) the portfolio motive
C) the transactions motive
D) the precautionary motive
Answer: A
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19) When interest rates fall, the IS schedule will experience
A) rightward movement along the curve.
B) leftward movement along the curve.
C) a shift to the left.
D) a shift to the right.
Answer: A
23) If the intersection of the IS and LM schedules lies above the BP curve, then
A) there is a balance of payments surplus.
B) there is a balance of payments deficit.
C) the three curves are in equilibrium.
D) net foreign investment is decreasing.
Answer: A
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25) If the BP curve sits above the intersection of IS and LM, then
A) the nominal interest rate and the real income levels are inconsistent with a balance of
payments equilibrium.
B) the real interest rate and the real income levels are too high resulting in a balance of payments
surplus.
C) real money demand is not equal to real income balances.
D) real income balances are greater than real trade balances.
Answer: A
26) Explain the relationship between the aggregate expenditures schedule and the IS curve. What
happens to both schedules if government spending increases? Demonstrate on a graph and
explain intuitively.
Answer: Answers will vary.
27) Explain the relationship between real money stock and the LM schedule. What happens if
real money stock increases? Demonstrate on a graph and explain your intuition.
Answer: Answers will vary.
28) If prices rise in an economy, what will that mean to the IS-LM graphs? Demonstrate the
change to the graph and explain how the economy returns to equilibrium.
Answer: Answers will vary.
29) If an economy starts at one point on the BP curve, explain what would happen if real income
rises to bring the economy to a new point on the BP curve.
Answer: Answers will vary.
30) Demonstrate a balance of payments deficit in the nominal interest rate, real income space.
Answer: Answers will vary.
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¹⁵And Hilkiah answered and said to Shaphan
the scribe, I have found the book of the law in
the house of the Lord. And Hilkiah delivered
the book to Shaphan. ¹⁶And Shaphan carried
the book to the king, and moreover brought
the king word again, saying, All that was
committed to thy servants, they do it. ¹⁷And
they have emptied out ¹ the money that was
found in the house of the Lord, and have
delivered it into the hand of the overseers, and
into the hand of the workmen.
¹ Or, poured out.
20. Ahikam the son of Shaphan] Compare Jeremiah xxvi. 24, xl.
5.
that is poured out upon us] In 2 Kings “that is kindled against us,”
so LXX. ἐκκέκαυται. Compare verse 25.
²²So Hilkiah, and they whom the king had
commanded, went to Huldah the prophetess,
the wife of Shallum the son of Tokhath ¹, the
son of Hasrah ², keeper of the wardrobe; (now
she dwelt in Jerusalem in the second
quarter ³;) and they spake to her to that effect.
²³And she said unto them, Thus saith the
Lord, the God of Israel: Tell ye the man that
sent you unto me,
¹ In 2 Kings xxii. 14, Tikvah.
all that were found in Israel] i.e. the remnant of the northern
tribes, compare verse 21.
All his days] Contrast the evil record of his son Jehoiakim, xxxvi.
5‒8.
Hilkiah the priest found the book of the law of the Lord] This
remarkable statement has proved to be a fruitful subject of
discussion. What precisely is meant by “the book of the law” said to
have been found by Hilkiah in the Temple? It is essential to
distinguish between the answer which the Chronicler would have
given to this question and the conclusions reached by an
independent survey of the problem. (1) Undoubtedly the Chronicler
supposed “the book of the law” to be the whole Pentateuch, since he
believed that the entire Law existed as it now is from the time of
Moses. The argument against his view is obvious to us at the
present time. Beside the practical objection of the impossibility of
reading the whole Pentateuchal Law twice in succession to different
persons on the same day (2 Kings xxii. 8, 10)—a difficulty which
perhaps the Chronicler himself perceived and sought to avoid, see
note on verse 18,—there is the overwhelming testimony of the
general evidence that a large part of the Pentateuch in its final form,
with which the Chronicler was familiar, is of post-exilic date. His
Pentateuch was quite certainly not “the book” found by Hilkiah. (2) It
is extremely interesting to observe that the first step towards the
judgement of modern criticism was taken at a very early date and by
certain of the Christian Fathers—Jerome, Procopius of Gaza,
Chrysostom—who put forward the view that the book in question
was not the whole Pentateuch but only the Book of Deuteronomy.
[For the details the student must be referred to articles in the
Zeitschrift für alttestamentliche Wissenschaft, 1902, pp. 170 f., 312
f., and the Journal of Biblical Literature, 1903, p. 50.] This view, first
developed scientifically by De Wette, gained eventually a very wide
acceptance amongst scholars. Stress is laid upon the resemblance
between the reforms ascribed to Josiah and the exhortations and
injunctions of Deuteronomy, particularly as regards the restriction of
sacrificial worship to one sanctuary (i.e. Jerusalem; compare
Deuteronomy xii. 10‒14). For the evidence the student may consult
Chapman, Introduction to the Pentateuch, pp. 135‒146, especially
pp. 142‒145 (in this series); or Driver, Deuteronomy (International
Critical Commentaries), pp. xliv ff. (3) Further, internal consideration
of the Book of Deuteronomy has led to the conclusion that it cannot
all date from the time of Josiah: and thus it is now generally held that
Hilkiah’s “book of the law” was not the final form of Deuteronomy, but
only the nucleus of that Book—probably chapters v.‒xxvi. and xxviii.,
or xii.‒xxvi. and xxviii., or even certain passages from those chapters
(see Chapman, Introduction to the Pentateuch, pp. 144, 145; or
Driver, Deuteronomy, pp. lxv ff.). (4) Finally, there are grounds for
doubting whether any part of Deuteronomy can be dated from the
time of Josiah. It is suggested that the Deuteronomic code is not
earlier than Jeremiah but later. Although this view does not yet
command general acceptance, it is fair to insist that it rests upon
evidence which cannot be so lightly set aside as is occasionally
supposed. The student may conveniently refer to remarks by R. H.
Kennett in the Encyclopaedia of Religion and Ethics, vol. vii., s.v.
Israel p. 447, and to the references there given, especially the
Journal of Theological Studies, VII. [1906], pp. 481 ff. If
Deuteronomy be later than the time of Josiah, what then can we
suppose this “book of the law” (sēpher hattōrah) to have been; for
there is no reason to question the accuracy of the tradition that some
impressive writing was discovered in the Temple? The answer will be
—in all probability—some scroll of prophetic teaching, in which the
abuses of worship (perhaps in Manasseh’s reign) and in particular
the corruptions of the country “high places” were searchingly
denounced and an appeal made for reform. Since at that date the
term tōrah was applicable to prophetic teaching as well as to legal
instruction, such a work would be known as “a book of tōrah.” It is
not a very serious objection that the text here and in Kings reads “the
book of the law (hattōrah),” partly because a peculiarity of Hebrew
grammar would still allow the translation “a book of tōrah,” partly
because the introduction of the definite article into the text would be
most natural, so soon as it came to be thought that the phrase
referred to Deuteronomy or the Pentateuch. We may summarise as
follows:—To the Chronicler “the book of the law” signified the whole
Pentateuch in its final form; to the compilers or editors of Kings (the
Chronicler’s source), who probably wrote at the “Deuteronomic”
stage of the history, it no doubt meant Deuteronomy; and lastly,
according to modern judgement the book actually discovered was
either the earliest or essential portions of Deuteronomy or possibly a
pre-Deuteronomic prophetic writing demanding the purification of
worship in Jerusalem and urging the abolition of the sacrifices and
feasts at the local shrines.
Chapter XXXV.
1‒19 (= 1 Esdras i. 1‒22; compare 2 Kings xxiii. 21‒23).
Josiah’s Passover.
Put the holy ark in the house] This rather curious remark seems
to imply that the ark had been removed from the Temple either by
Manasseh or by Josiah during the repairing of the house. The
Levites are bidden to set it in its place without delay, and to devote
themselves to the tasks related in verses 4 ff.
let there be for each a portion ... of the Levites] Each great
division of the laity was to be served by a small division of the
Levites.
from the days of Samuel] In 2 Kings xxiii. 22 “from the days of the
judges.”