史蒂芬威廉森宏观经济学第四版课后题答案最新SolutionCH10.pdfVIP

Chapter 10 A Real Intertemporal Model with Investment Textbook Question Solutions Questions for Review 1. An increase in the real interest rate makes future leisure less expensive than current leisure. Therefore, current labor supply increases when the real interest rate increases. An increase in the real interest rate also makes future consumption less expensive than current consumption. Therefore, current consumption falls when the real interest rate increases. Alternatively, an increase in the real interest rate raises the rate of return on savings. The consumer can save more both by working more and consuming less in the current period. 2. The primary determinants of current labor supply are the current real wage, the real interest rate, and lifetime wealth. 3. Current labor demand is exclusively governed by the current-period marginal product of labor schedule. Therefore, labor demand depends on total factor productivity and the current-period capital stock. 4. The representative firm maximizes the present value of its profits. 5. The representative firm should invest until the point at which the net marginal product of capital equals the real rate of interest. 6. The current capital stock does not affect the optimal amount of capital that the firm wants in place next period. However, if the firm has more capital in the current period, a lower amount of investment is needed to achieve the desired amount of capital. 7. An increase in future total factor productivity raises the net marginal product of capital, and therefore investment increases. 8. The government must equate the present value of government spending with the present value of taxes. The government may run a deficit in the current period, but if it does so it must run a surplus in the future period. 9. Changes in the lifetime wealth of consumers, change