1) In the corsetti-Pesenti model a monetary expansion at home may reduce welfare of domestic risidents because:
A : It may reduce domestic output ant employment
B: It increases domestic prices in the long run
C: It increases domestic and foreign prices in long run
D: It deteriorates the terms of trade in the short run
2) Consider the simple overlapping generation model discussed in class where at any time t, there are 2 generations alive and each generation lives for 2 periods .Assume the gouverment reduces taxes at time t0 thus creating a debt d which remains constant thereafter. This policy has the following effect:
A : consumption of the generation old at time t0 decreases
B: consumption of the generation young at time t0 decrease at t0 and increase at t1
C: consumption of the generation young at time t0 increase at t0 and decrease at t1
D: consumption of the generation young at time t0 increase at t0 and t1
[此贴子已经被作者于2009-6-6 2:24:07编辑过]


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