我也要来作点贡献，越毒寂静第而篇

lilac911

Prep 1
Essay #10.  154    (22742-!-item-!-188;#058&00154-00)

Conventional wisdom has it that large deficits赤字 in the United States budget cause interest rates to rise.  Two main arguments are given for this claim.  According to the first, as the deficit increases, the government will borrow more to make up for the ensuing shortage of funds.  Consequently, it is argued, if both the total supply of credit (money available for borrowing) and the amount of credit sought by nongovernment borrowers remain relatively stable, as is often supposed, then the price of credit (the interest rate) will increase.  That this is so is suggested by the basic economic principles that if supplies of a commodity (here, credit) remain fixed and demand for that commodity increases, its price will also increase.  The second argument supposes that the government will tend to finance its deficits by increasing the money supply with insufficient regard for whether there is enough room for economic growth to enable such an increase to occur without causing inflation.  It is then argued that financiers will expect the deficit to cause inflation and will raise interest rates, anticipating that because of inflation the money they lend will be worth less when paid back.

Unfortunately for the first argument, it is unreasonable to assume that nongovernment borrowing and the supply of credit will remain relatively stable.  Nongovernment borrowing sometimes decreases.  When it does, increased government borrowing will not necessarily push up the total demand for credit.  Alternatively, when credit availability increases, for example through greater foreign lending to the United States, then interest rates need not rise, even if both private and government borrowing increase.

The second argument is also problematic.  Financing the deficit by increasing the money supply should cause inflation only when there is not enough room for economic growth.  Currently, there is no reason to expect deficits to cause inflation.  However, since many financiers believe that deficits ordinarily create inflation, then admittedly they will be inclined使倾向 to raise interest rates to offset mistakenly anticipated inflation.  This effect, however, is due to ignorance无知愚昧, not to the deficit itself, and could be lessened by educating financiers on this issue.

Question #33.  154-01    (22788-!-item-!-188;#058&000154-01)

Which of the following best summarizes the central idea of the passage? C

(A) A decrease in nongovernment borrowing or an increase in the availability of credit can eliminate or lessen the ill effects of increased borrowing by the government.
(B) Educating financiers about the true relationship between large federal deficits and high interest rates will make financiers less prone to raise interest rates in response to deficits.
(C) There is little support for the widely held belief that large federal deficits will create higher interest rates, as the main arguments given to defend辩解 this claim are flawed.
(D) When the government borrows money, demand for credit increases, typically creating higher interest rates unless special conditions such as decreased consumer spending arise.
(E) Given that most financiers believe in a cause-and-effect relationship between large deficits and high interest rates, it should be expected that financiers will raise interest rates.

Question #34.  154-03    (22834-!-item-!-188;#058&000154-03)

It can be inferred from the passage that proponents of the second argument would most likely agree with which of the following statements? E C

(A) The United States government does not usually care whether or not inflation increases.
(B) People in the United States government generally know very little about economics.
(C) The United States government is sometimes careless in formulating系统地表达 its economic policies.
(D) The United States government sometimes relies too much on the easy availability of foreign credit.
(E) The United States government increases the money supply whenever there is enough room for growth to support the increase.

Question #35.  154-07    (22880-!-item-!-188;#058&000154-07)

Which of the following claims concerning the United States government's financing of the deficit does the author make in discussing the second argument? E

(A) The government will decrease the money supply in times when the government does not have a deficit to finance.
(B) The government finances its deficits by increasing the money supply whenever the economy is expanding.
(C) As long as the government finances the deficit by borrowing, nongovernment borrowers will pay higher interest rates.
(D) The only way for the government to finance its deficits is to increase the money supply without regard for whether such an increase would cause inflation.
(E) Inflation should be caused when the government finances the deficit by increasing the money supply only if there is not enough room for economic growth to support the increase.

Question #36.  154-08    (22926-!-item-!-188;#058&000154-08) D A

The author uses the term "admittedly诚然" (see highlighted text) in order to indicate that

(A) the second argument has some truth to it, though not for the reasons usually supposed
(B) the author has not been successful in attempting to point out inadequacies in the two arguments
(C) the thesis that large deficits directly cause interest rates to rise has strong support after all
(D) financiers should admit that they were wrong in thinking that large deficits will cause higher inflation rates
(E) financiers generally do not think that the author's criticisms of the second argument are worthy of consideration

joyce22

感谢LZ~ 考古确认了吗？？

gwendolinecn

真的吗？prep里面的题拿出来靠吗？

peiyabbfbl

真的吗？prep里面的题拿出来靠吗？

-- by 会员 gwendolinecn (2010/11/29 22:57:22)

上个月就有PREP里的原文（大家都很惊讶）~所以这个月如果也有那也可以淡定了~~

这篇待考过的同学们来确认~~

谢谢LZ！

cherry12345

请问，答案是什么？

lilac911

答案是CCEA，如果问题后有两个答案的，第一个是我选错的，第二个是正确的。抱歉忘记删了，误导子们了

chong13

PREP的文章不会考吧？上月也没有啊？