Macroeconomics 8th Edition Abel Test Bank instant download all chapter

Macroeconomics 8th Edition Abel Test
Bank
Go to download the full and correct content document:
https://testbankdeal.com/product/macroeconomics-8th-edition-abel-test-bank/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...
Macroeconomics 9th Edition Abel Test Bank
https://testbankdeal.com/product/macroeconomics-9th-edition-abel-
test-bank/
Macroeconomics Canadian 7th Edition Abel Test Bank
https://testbankdeal.com/product/macroeconomics-canadian-7th-
edition-abel-test-bank/
Macroeconomics Canadian 6th Edition Abel Test Bank
edition-abel-test-bank/
Macroeconomics 9th Edition Abel Solutions Manual
https://testbankdeal.com/product/macroeconomics-9th-edition-abel-
solutions-manual/
Macroeconomics Canadian 7th Edition Abel Solutions
Manual
edition-abel-solutions-manual/
Macroeconomics Canadian 6th Edition Abel Solutions

Manual
edition-abel-solutions-manual/
Macroeconomics 8th Edition Mankiw Test Bank
https://testbankdeal.com/product/macroeconomics-8th-edition-
mankiw-test-bank/
Macroeconomics Canadian 8th Edition Sayre Test Bank
edition-sayre-test-bank/
Macroeconomics for Today 8th Edition Tucker Test Bank
https://testbankdeal.com/product/macroeconomics-for-today-8th-
edition-tucker-test-bank/
Macroeconomics, 8e (Abel/Bernanke/Croushore)
Chapter 7 The Asset Market, Money, and Prices
7.1 What Is Money?
1) A disadvantage of the barter system is that

A) no trade occurs.
B) people must produce all their own food, clothing, and shelter.
C) the opportunity to specialize is greatly reduced.
D) gold is the only unit of account.
Answer: C
Diff: 1
Topic: Section: 7.1
Question Status: Previous Edition
2) The use of money is more efficient than barter because the introduction of money
A) reduces the need for economic specialization.
B) reduces the need to exchange goods.
C) reduces the need for other stores of value.
D) reduces transaction costs.
Answer: D
Diff: 1
Topic: Section: 7.1
3) In economics, money refers to

A) income.
B) wealth.
C) assets used and accepted as payment.
D) currency.
Answer: C
Diff: 1
Topic: Section: 7.1
4) moneys primary role in the economy comes from the benefits of lowering transactions costs
and allowing specialization. This function of money is called
A) store of value.
B) medium of exchange.
C) standard of deferred payment.
D) unit of account.
Answer: B
Diff: 1
Topic: Section: 7.1
1
Copyright © 2014 Pearson Education, Inc.
5) For something to satisfy the medium-of-exchange function of money, it must be
A) backed by gold.
B) readily exchangeable for other goods.
C) issued by a central bank.
D) an inherently valuable commodity.
Answer: B
Diff: 1
Topic: Section: 7.1
6) The following are all functions of money EXCEPT

A) medium of exchange.
B) store of value.
C) unit of account.
D) source of anxiety.
Answer: D
Diff: 1
Topic: Section: 7.1
Question Status: New
7) In some countries, prices in stores are listed in terms of U.S. dollars, rather than in units of the
local currency. That's most likely because
A) the country's political system is unstable.
B) interest rates are higher using U.S. dollars than using the local currency.
C) there is no other store of value.
D) the country has experienced high rates of inflation.
Answer: D
Diff: 1
Topic: Section: 7.1
8) The number of units of one good that trade for one unit of alternative goods can be determined
most easily when
A) there is one unit of account.
B) the goods all weigh about the same.
C) the goods are all new.
D) the goods are actively traded through barter.
Answer: A
Diff: 1
Topic: Section: 7.1
2
9) A good that is used as a medium of exchange as well as being a consumption good is called
A) a barter money.
B) a commodity money.
C) a legal tender.
D) a debased money.
Answer: B
Diff: 1
Topic: Section: 7.1
10) Why do people keep currency in their pockets when bank deposits pay interest?
A) Because banks might steal your money.
B) Because currency is more liquid.
C) Because bank deposits lose value due to inflation.
D) Because bank deposits lose value due to changes in interest rates.
Answer: B
Diff: 1
Topic: Section: 7.1
11) One of moneys primary roles in the economy comes from the use of money to transfer
purchasing power to the future. This role of money is called
A) store of value.
B) unit of account.
C) medium of exchange.
D) standard of deferred payment.
Answer: A
Diff: 1
Topic: Section: 7.1
12) Which of the following measures is the best measure of money as a medium of exchange?
A) M1
B) M2
C) M3
D) None of the above
Answer: A
Diff: 1
Topic: Section: 7.1
3
13) Suppose your bank raises its minimum-balance requirement for free checking on checking
accounts by $500. You take $500 out of your passbook savings account and put it in your
checking account. What is the overall effect on M1 and M2?
A) M1 rises by $500, M2 falls by $500.
B) M1 is unchanged, M2 is unchanged.
C) M1 rises by $500, M2 is unchanged.
D) M1 is unchanged, M2 falls by $500.
Answer: C
Diff: 3
Topic: Section: 7.1
14) M1 does not include

A) MMMFs.
B) travelers' checks.
C) currency.
D) transaction accounts.
Answer: A
Diff: 1
Topic: Section: 7.1
Question Status: Revised
15) Which of the following is not part of M1?

A) Transaction accounts
B) Checking accounts
C) Time deposits
D) Traveler's checks
Answer: C
Diff: 1
Topic: Section: 7.1
Question Status: Revised
16) Which of the following statements about M1 and M2 is true?

A) Demand deposits are not part of M1.
B) M2 is more liquid than M1.
C) M1 is larger than M2.
D) Savings deposits are part of M2.
Answer: D
Diff: 1
Topic: Section: 7.1
4
17) Which of the following statements about M1 and M2 is not true?
A) Transaction accounts are part of M1.
B) M2 is more liquid than M1.
C) M2 is larger than M1.
D) Transaction accounts are part of M2.
Answer: B
Diff: 2
Topic: Section: 7.1
18) M2 includes
A) large-denomination time deposits.
B) institutional MMMFs.
C) commercial paper.
D) M1.
Answer: D
Diff: 1
Topic: Section: 7.1
19) M2 does not include

A) Treasury bonds.
B) passbook savings accounts.
C) small-denomination time deposits.
D) M1.
Answer: A
Diff: 1
Topic: Section: 7.1
20) Over half of U.S. currency is

A) held abroad.
B) used in the underground economy.
C) held by banks as reserves.
D) held by businesses, especially retailers, for making transactions.
Answer: A
Diff: 1
Topic: Section: 7.1
5
21) People in other countries want to hold U.S. dollars as a
A) medium of exchange.
B) store of value.
C) unit of account.
D) standard of deferred payment.
Answer: B
Diff: 1
Topic: Section: 7.1
22) We shouldn't be concerned about U.S. currency held abroad because

A) the currency will never return to the United States.
B) foreigners use it to buy U.S. bonds.
C) it represents an interest-free loan to the United States.
D) foreigners can't spend it in their own countries.
Answer: C
Diff: 1
Topic: Section: 7.1
23) What's the most common way for a central bank to reduce the money supply?
A) Collect higher taxes
B) Sell bonds to the public
C) Buy bonds from the government
D) Buy bonds from the public
Answer: B
Diff: 1
Topic: Section: 7.1
24) Suppose you read in the paper that the Federal Reserve plans to expand the money supply.
The Fed is most likely to do this by
A) printing more currency and distributing it.
B) purchasing government bonds from the public.
C) selling government bonds to the public.
D) buying newly issued government bonds directly from the government itself.
Answer: B
Diff: 1
Topic: Section: 7.1
6
25) A developing country does not have enough taxes to cover its expenditures and is unable to
borrow. This government would be most likely to cover its deficit by
A) purchasing government bonds from the public.
B) selling government bonds to the public.
C) selling newly issued government bonds directly to the central bank.
D) buying newly issued government bonds directly from the central bank.
Answer: C
Diff: 2
Topic: Section: 7.1
26) What are the major components of M1? What are the major components of M2? Describe
each component.
Answer: The principal components of M1 are currency, transaction accounts, and traveler's
checks. Currency includes coins and Federal Reserve notes (i.e., paper money). Transaction
accounts are those against which checks may be drawn. Traveler's checks are a substitute for
currency that can be replaced if lost or stolen. The principal components of M2 are M1, savings
account deposits including money market deposit accounts (MMDAs), small time deposits, and
money market mutual funds (MMMFs). Small time deposits are certificates of deposit (CDs) of
less than $100,000 denomination. MMMFs invest their shareholders' funds in short-term
securities, pay market-based interest rates, and allow holders to write a limited number of
checks. MMDAs are like MMMFs, except they are offered by banks or thrift institutions such as
savings and loan associations.
Diff: 2
Topic: Section: 7.1
27) What function is money playing in each of these situations:

a. You walk into a store in Germany and see that all the prices are in euros.
b. You buy a candy bar for $1.25.
c. Your Aunt Jane keeps $100 bills tucked into many books in her house.
Answer: a. unit of account; b. medium of exchange; c. store of value.
Diff: 2
Topic: Section: 7.1
7
28) What happens to M1 and M2 due to each of the following changes?
(a) You take $500 out of your checking account and put it into a passbook savings account.
(b) You take $1000 out of your checking account and buy traveler's checks.
(c) You take $1500 out of your money-market mutual fund and deposit into your checking
account.
(d) You cash in $2000 in savings bonds and invest the money in a certificate of deposit.
Answer:
(a) M1 falls $500, M2 is unchanged (remember that M1 is part of M2).
(b) M1 and M2 are both unchanged.
(c) M1 rises $1500, M2 is unchanged.
(d) M1 is unchanged, M2 rises $2000.
Diff: 2
Topic: Section: 7.1
29) Why is per-capita U.S. currency demand so large? Who is holding large amounts of U.S.
currency and why are they doing so? Should U.S. policymakers be concerned about this? Why?
Answer: Currency demand is large mostly because foreigners hold many dollars. They do so
because of inflation or political instability in their countries. Policymakers shouldn't be very
concerned, since foreigners' dollar holdings represent an interest-free loan to the United States.
However, a cause for concern may be that fluctuations in our money supply may reflect
conditions abroad that are unrelated to the U.S. economy.
Diff: 1
Topic: Section: 7.1
7.2 Portfolio Allocation and the Demand for Assets
1) People's best guesses about returns on assets are called

A) expected returns.
B) liquidity.
C) risk.
D) the term structure of returns.
Answer: A
Diff: 1
Topic: Section: 7.2
2) The set of assets that a holder of wealth chooses to own is called

A) an asset assortment.
B) a wealth strategy.
C) a portfolio.
D) an investment envelope.
Answer: C
Diff: 1
Topic: Section: 7.2
8
3) The uncertainty about the return an asset will earn is
A) liquidity.
B) risk.
C) time to maturity.
D) stochastic dominance.
Answer: B
Diff: 1
Topic: Section: 7.2
4) The risk premium is

A) the amount by which the expected return on a risky asset exceeds the return on an otherwise
comparable safe asset.
B) a measure of the riskiness of the overall economy in a domestic country compared with a
foreign country.
C) the amount an investor must pay to insure his or her stock portfolio to protect against a fall in
value.
D) the amount an investment bank charges to guarantee an annuity that pays a fixed rate of
return in the future.
Answer: A
Diff: 1
Topic: Section: 7.2
5) The amount by which the expected return on a risky asset exceeds the return on an otherwise
comparable safe asset is known as the
A) CDS spread.
B) risk premium.
C) VIX.
D) term spread.
Answer: B
Diff: 1
Topic: Section: 7.2
6) The ease and quickness with which an asset can be exchanged for goods, services, or other
assets is its
A) risk.
B) time to maturity.
C) velocity.
D) liquidity.
Answer: D
Diff: 1
Topic: Section: 7.2
9
7) Time to maturity refers to the amount of time until
A) an asset repays the principal to an investor.
B) an asset pays interest for the first time.
C) a bond can be sold on the secondary market.
D) the yield curve shows an upward slope.
Answer: A
Diff: 1
Topic: Section: 7.2
8) Compared with money, bonds have

A) less risk and less liquidity.
B) less risk and more liquidity.
C) more risk and less liquidity.
D) more risk and more liquidity.
Answer: C
Diff: 1
Topic: Section: 7.2
9) AAA Company stock has a higher expected rate of return than ZZZ Company stock. All else
being equal, you would expect that relative to ZZZ, AAA company stock provides
A) less risk and less liquidity.
B) less risk and more liquidity.
C) more risk and less liquidity.
D) more risk and more liquidity.
Answer: C
Diff: 1
Topic: Section: 7.2
10) The least liquid asset on this list is

A) money.
B) bonds.
C) houses.
D) stocks.
Answer: C
Diff: 1
Topic: Section: 7.2
10
11) In the early 2000s, lenders began issuing mortgage loans to people who would normally not
be qualified to take out loans because they did not meet lending standards. Those borrowers are
known as
A) alternative borrowers.
B) weak borrowers.
C) subprime borrowers.
D) credit risks.
Answer: C
Diff: 1
Topic: Section: 7.2
12) The financial crisis occurred in 2008 in large part because of losses on securities consisting
of bundles of mortgage loans known as
A) home loan loss reserves.
B) credit default swaps.
C) mortgage-backed securities.
D) naked put options.
Answer: C
Diff: 1
Topic: Section: 7.2
13) A one-year bond has an interest rate of 5% today. Investors expect that in one year, a one
year bond will have an interest rate equal to 7%. According to the expectations theory of the term
structure of interest rates, in equilibrium, a two-year bond today will have an interest rate equal
to
A) 3.0%.
B) 5.0%.
C) 5.5%.
D) 6.0%.
Answer: D
Diff: 1
Topic: Section: 7.2
14) The idea that investors today compare the returns on bonds with differing times to maturity
to see which is expected to give them the highest return is the underlying principle behind the
________ of the term structure of interest rates.
A) expectations theory
B) investors' viewpoint analysis
C) segmented-markets theory
D) yield comparison theory
Answer: A
Diff: 1
Topic: Section: 7.2
11
15) The interest rate on long-term bonds is somewhat higher than suggested by the expectations
theory because
A) the expectations theory doesn't account for taxes.
B) a risk premium exists.
C) an inflation premium must be added to long-term bonds.
D) the Fed can only control short-term interest rates.
Answer: B
Diff: 1
Topic: Section: 7.2
16) By spreading her investments out over many different assets, an investor achieves
A) a higher expected return.
B) increased risk.
C) diversification.
D) greater liquidity.
Answer: C
Diff: 1
Topic: Section: 7.2
17) Suppose that you could buy a one-year bond today, which has an interest rate of 3%. If you
wait a year and buy a one-year bond then, the interest rate will be 4%. Two years from now, a
one-year bond is expected to offer an interest rate of 5%. According to the expectations theory of
the term structure of interest rates, what is the interest rate on a two-year bond today? What is the
interest rate on a three-year bond today?
Answer: Two-year bond: (3% + 4%)/2 = 3.5%; Three-year bond: (3% + 4% + 5%)/3 = 4%.
Diff: 2
Topic: Section: 7.2
12
18) Suppose that:
1) The interest on a one-year bond today is 3%;
2) The interest on a one-year bond starting one year from now is expected to be 4% per year;
3) The interest on a one-year bond starting two years from now is expected to be 5% per year;
4) The risk premium on a two-year bond is 0.5%; and
5) The risk premium on a three-year bond is 1.0%.
Use that information to answer the following questions.

a) According to the expectations theory, what is the interest rate today on a two-year bond?
Show your work.
b) According to the expectations theory, what is the interest rate today on a three-year bond?
Show your work.
c) Plot the yield curve.
Answer:
a) (3% + 4%)/2 + 0.5% = 4.0%
b) (3% + 4% + 5%)/3 + 1.0% = 5.0%
c) plot 3 points with 1, 2, and 3 years to maturity vs. yields of 3%, 4%, and 5%.
Diff: 2
Topic: Section: 7.2
7.3 The Demand for Money
1) A 10% decrease in real income usually leads to ________ in money demand.

A) an increase
B) no change
C) a decrease of less than 10%
D) a decrease of 10%
Answer: C
Diff: 1
Topic: Section: 7.3
2) A 5% increase in real income usually leads to ________ in money demand.

A) a decrease
B) no change
C) an increase of less than 5%
D) a decrease of 5%
Answer: C
Diff: 1
Topic: Section: 7.3
13
3) Which of the following is most likely to lead to a decrease of 10% in the nominal demand for
money?
A) An increase in real income of 5%
B) A decrease in real income of 5%
C) A decline of 10% in the price level
D) An increase of 10% in the price level
Answer: C
Diff: 2
Topic: Section: 7.3
4) Which of the following is most likely to lead to an increase of 1% in the nominal demand for
money?
A) An increase in real income of 0.5%
B) A decrease in real income of 0.5%
C) A decline of 1% in the price level
D) An increase of 1% in the price level
Answer: D
Diff: 2
Topic: Section: 7.3
5) The opportunity cost of holding currency decreases when

A) income decreases.
B) the interest rate on bonds decreases.
C) the interest rate on money decreases.
D) wealth decreases.
Answer: B
Diff: 1
Topic: Section: 7.3
6) An increase in the real interest rate would cause an increase in the real demand for money
A) no matter what the change in expected inflation.
B) if expected inflation fell by less than the rise in the real interest rate.
C) if expected inflation fell by the same amount as the rise in the real interest rate.
D) if expected inflation fell by more than the rise in the real interest rate.
Answer: D
Diff: 2
Topic: Section: 7.3
14
7) An increase in expected inflation is likely to cause
A) a decline in the demand for real balances.
B) an increase in the demand for real balances.
C) no change in the demand for real balances.
D) no change in the demand for real balances only if the income elasticity of real money demand
is zero.
Answer: A
Diff: 1
Topic: Section: 7.3
8) Mr. Pierpont has wealth of $200,000. He wants to keep at least $80,000 in bonds at all times,
and will shift $10,000 into bonds from his checking account for each percentage point that the
interest rate on bonds exceeds the interest rate on his checking account. If the interest rate on
checking accounts is 4% and the interest rate on bonds is 9%, how much does Mr. Pierpont keep
in his checking account?
A) $50,000
B) $70,000
C) $130,000
D) $150,000
Answer: B
Diff: 1
Topic: Section: 7.3
9) Mr. Pierpont has wealth of $200,000. He wants to keep at least $80,000 in bonds at all times,
and will shift $10,000 into bonds from his checking account for each percentage point that the
interest rate on bonds exceeds the interest rate on his checking account. Currently, he keeps
$100,000 in bonds, which pay him 7%. What is the current interest rate on checking accounts?
A) 5%
B) 7%
C) 9%
D) 10%
Answer: A
Diff: 1
Topic: Section: 7.3
15
10) Money demand is given by
Md/P = 1000 + .2Y - 1000i.
Given that P = 200, Y = 2000, and i = .10, real money demand is equal to
A) 1,300.
B) 1,500.
C) 260,000.
D) 300,000.
Answer: A
Diff: 2
Topic: Section: 7.3
11) Over time, the wealth of society increases and payments technologies get more efficient.
What is the effect on money demand of these two changes?
A) Money demand rises proportionately to the rise in wealth.
B) Money demand rises, but less than proportionately to the rise in wealth.
C) The overall effect is ambiguous.
D) Money demand declines.
Answer: C
Diff: 2
Topic: Section: 7.3
12) If there is a financial panic and increased uncertainty about the returns in the stock market
and bond market, what is the likely effect on money demand?
A) Money demand declines first, then rises when inflation increases.
B) Money demand rises.
Answer: B
Diff: 2
Topic: Section: 7.3
13) Suppose a new law imposes a tax on all trades of bonds and stock. What is the likely effect
on money demand?
A) Money demand declines first, then rises when inflation increases.
B) Money demand rises.
Answer: B
Diff: 2
Topic: Section: 7.3
16
14) If real income rises 4%, prices rise 1%, and nominal money demand rises 4%, what is the
income elasticity of real money demand?
A) 3/4
B) 4/5
C) 5/6
D) 1
Answer: A
Diff: 3
Topic: Section: 7.3
15) If real income rises 5%, prices rise 3%, and nominal money demand rises 7%, what is the
income elasticity of real money demand?
A) 3/4
B) 4/5
C) 5/6
D) 6/7
Answer: B
Diff: 3
Topic: Section: 7.3
16) If the interest elasticity of money demand is -0.1, by what percent does money demand
change if the nominal interest rate rises from 2% to 3%?
A) -0.1%
B) 5%
C) 0%
D) -5%
Answer: D
Diff: 2
Topic: Section: 7.3
17) If the income elasticity of money demand is 3/4 and the interest elasticity of money demand
is -1/4, by what percent does money demand rise if income rises 10% and the nominal interest
rate rises from 4% to 5%?
A) 7.50%
B) 6.25%
C) 5.00%
D) 1.25%
Answer: D
Diff: 3
Topic: Section: 7.3
17
18) Velocity is defined as
A) nominal money stock/nominal GDP.
B) nominal GDP/nominal money stock.
C) real money stock/real GDP.
D) mc2.
Answer: B
Diff: 1
Topic: Section: 7.3
19) If real GDP is $4 billion, the price level is 1.25, and the nominal money stock is $500
million, then velocity is
A) 0.1.
B) 1.
C) 10.
D) 100.
Answer: C
Diff: 2
Topic: Section: 7.3
20) Money demand is given by

Md/P = 1000 + .2Y - 1000i.
Given that P = 200, Y = 2000, and i = .10, velocity is equal to
A) 0.65.
B) 0.75.
C) 1.33.
D) 1.54.
Answer: D
Diff: 2
Topic: Section: 7.3
21) Suppose velocity is 3, real output is 9000, and the price level is 1.5. What is the level of real
money demand in this economy?
A) 2000
B) 3000
C) 6000
D) 30,000
Answer: B
Diff: 2
Topic: Section: 7.3
18
22) Suppose real money demand is 1000, real output is 6000, and the price level is 200. What is
the level of velocity in this economy?
A) 2
B) 3
C) 6
D) 12
Answer: C
Diff: 2
Topic: Section: 7.3
23) Suppose velocity is constant at 4, real output is 10, and the price level is 2. From this initial
situation, the government increases the nominal money supply to 6. If velocity and output remain
unchanged, by how much will the price level increase?
A) 2.4%
B) 20%
C) 24%
D) 50%
Answer: B
Diff: 3
Topic: Section: 7.3
24) What happens to real money demand (rise, fall, no change) due to a change in each of the
following factors?
(a) A tax on stock market transactions is introduced.
(b) Computerized bond trading reduces transactions costs.
(c) People's average level of wealth rises.
(d) The threat of a recession increases the riskiness of stocks and bonds.
(e) The interest rate paid on checking account balances declines.
(f) The price level falls in a one-time jump.
Answer:
(a) Rises
(b) Falls
(c) Rises
(d) Rises
(e) Falls
(f) Is unchanged
Diff: 1
Topic: Section: 7.3
19
25) Give five examples of factors that could reduce the demand for money.
Answer: Lower price level, lower real income, higher real interest rate, higher expected
inflation, lower nominal interest rate on money, lower wealth, lower risk on alternative assets,
higher risk on money, increased liquidity of alternative assets, or increased efficiency of
payments technologies.
Diff: 2
Topic: Section: 7.3
26) Suppose the money demand function is

Md/P = 1000 + 0.2Y - 1000 (r + πe).
(a) Calculate velocity if Y = 2000, r = .06, and πe = .04.
(b) If the money supply (Ms) is 2600, what is the price level?
(c) Now suppose the real interest rate rises to 0.11, but Y and Ms are unchanged. What happens
to velocity and the price level? So if the nominal interest rate were to rise from 0.10 to 0.15 over
the course of a year, with Y remaining at 2000, what would the inflation rate be?
Answer:
(a) V = PY/M = Y/(M/P). From the money demand function, M/P = 1300. So V = 2000/1300 =
1.54.
(b) P = Ms/( Md/P) = 2600/1300 = 2.
(c) Now Md/P = 1250. So V = 2000/1250 = 1.6. P = Ms/(Md/P) = 2600/1250 = 2.08. The
inflation rate would be 4%.
Diff: 3
Topic: Section: 7.3
7.4 Asset Market Equilibrium
1) Under a situation of asset market equilibrium,

A) the quantity of money supplied equals the quantity of money demanded.
B) the quantity of money supplied equals the quantity of nonmonetary assets demanded.
C) the quantity of nonmonetary assets supplied equals the quantity of monetary assets demanded.
D) the quantity of money supplied equals the quantity of nonmonetary assets supplied.
Answer: A
Diff: 1
Topic: Section: 7.4
20
2) When the real quantity of money supplied equals the real quantity of money demanded, there
is said to be
A) goods market equilibrium.
B) asset market equilibrium.
C) monetary neutrality.
D) money illusion.
Answer: B
Diff: 1
Topic: Section: 7.4
3) Which of these variables is not a variable in the equation for the asset market equilibrium
condition?
A) Nominal money supply
B) Price level
C) Real income
D) Investment
Answer: D
Diff: 1
Topic: Section: 7.4
4) Which of these variables is not a variable in the equation for the asset market equilibrium
condition?
A) Saving
B) Expected rate of inflation
C) Real interest rate
D) Real income
Answer: A
Diff: 1
Topic: Section: 7.4
5) If the quantity of money demanded exceeds the quantity of money supplied, then
A) the quantity of nonmonetary assets demanded exceeds the quantity supplied.
B) the quantity of nonmonetary assets supplied exceeds the quantity demanded.
C) the quantity of nonmonetary assets demanded will still equal the quantity supplied, all else
being equal.
D) you can make no conclusions about the relative supply and demand of nonmonetary assets.
Answer: B
Diff: 2
Topic: Section: 7.4
21
6) Suppose the real money demand function is
Md//P = 2400 + 0.2 Y - 10,000 (r + πe).
Assume M = 4000, P = 2.0, πe = .03, and Y = 5000. The real interest rate that clears the asset
market is
A) 3%.
B) 6%.
C) 11%.
D) 14%.
Answer: C
Diff: 3
Topic: Section: 7.4

Md/P = 2400 + 0.2 Y - 10,000 (r + πe).
Assume M = 5000, πe = .03, and Y = 5000. If the price level were to decrease from 2.5 to 2.0,
then the real interest rate would decrease by how many percentage points (assuming Md/, πe, and
Y are unchanged)?
A) 4
B) 5
C) 9
D) 14
Answer: B
Diff: 3
Topic: Section: 7.4

Md/P = 2400 + 0.2 Y - 10,000 (r + πe).
Assume M = 5000, P = 2.0, and πe = .03. If Y were to increase from 4000 to 5000, then the real
interest rate would increase by how many percentage points?
A) 2
B) 4
C) 5
D) 7
Answer: A
Diff: 3
Topic: Section: 7.4
22
9) Suppose real money demand is
L = 0.8 Y - 100,000 (r + πe).
If the nominal money supply is 12,000, real output is 15,000, the real interest rate is .02, and the
expected inflation rate is .01, then the price level is
A) 3/4.
B) 1.
C) 4/3.
D) 3.
Answer: C
Diff: 3
Topic: Section: 7.4
10) Suppose the real interest rate is 4% and the expected inflation rate is 3%. If the money
supply increases by 10% and output, the real interest rate, and the expected inflation rate are
unchanged, then the price level increases by
A) 3%.
B) 4%.
C) 7%.
D) 10%.
Answer: D
Diff: 3
Topic: Section: 7.4
11) Define asset market equilibrium and state the asset market equilibrium condition.
Answer: Asset market equilibrium exists when the quantity of assets supplied equals the
quantity of assets demanded in a national economy in some time period. The asset market
equilibrium equation is M/P = L(Y, r + πe).
Diff: 1
Topic: Section 7.4
23
12) Suppose the money demand function is given by
Md/P = 640 + 0.1Y - 5000 (r + πe).
Suppose the central bank changes the nominal money supply depending on income and inflation:
Ms = 1000 + 0.1Y - 4000π.
(a) If expected inflation equals actual inflation = 0.03, Y = 1000, and r = 0.02, calculate the price
level.
(b) If inflation rises to 0.04 while the other variables remain as in part a, calculate the price
level.
(c) If expected inflation rises to 0.04 while the other variables remain as in part a, calculate the
price level.
(d) If the real interest rate rises to 0.03 while the other variables remain as in part a, calculate the
price level.
Answer:
Plug in the value of Y and use text Eq. (7.10) to get P = [1100 - 4000π]/[740 - 5000(r + )].
When r = 0.02, this becomes P = [1100 - 4000π]/[640 - 5000π].
(a) P = 980/490 = 2.
(b) P = 940/490 = 1.92.
(c) P = 980/440 = 2.23.
(d) P = 980/440 = 2.23.
Diff: 2
Topic: Section: 7.4
13) Assume that prices and wages adjust rapidly so that the markets for labor, goods, and assets
are always in equilibrium. What are the effects of each of the following on output, the expected
real interest rate, and the current price level?
(a) a temporary increase in taxes
(b) a reduction in the effective tax rate on capital
(c) an increase in expected inflation
Answer:
(a) Under Ricardian equivalence, no effect on output, real interest rate, or price level. Without
Ricardian equivalence, higher national saving means a lower expected real interest rate. Output
is unchanged because of no change in labor supply or demand. The lower expected real interest
rate increases real money demand, thus reducing the price level.
(b) The lower tax rate on capital increases desired investment, thus raising the expected real
interest rate. No effect on the labor market, so output is not changed. The higher expected real
interest rate reduces real money demand, thus increasing the price level.
(c) The increase in the expected inflation rate has no effect on the labor market or goods market,
so output and the expected real interest rate do not change. The higher expected inflation rate
reduces real money demand, thus increasing the price level.
Diff: 2
Topic: Section: 7.4
24
7.5 Money Growth and Inflation
1) If the nominal money supply doubles while real money demand is unchanged, what happens
to the price level?
A) The price level increases by a factor of four.
B) The price level doubles.
C) The price level is unchanged.
D) The price level falls by one-half.
Answer: B
Diff: 1
Topic: Section: 7.5
2) If real money demand doubles while the nominal money supply is unchanged, what happens
to the price level?
A) The price level increases by a factor of four.
B) The price level doubles.
C) The price level is unchanged.
D) The price level falls by one-half.
Answer: D
Diff: 1
Topic: Section: 7.5
3) If nominal money supply grows 3% and real money demand grows 8%, the inflation rate is
A) -5%.
B) 8/3%.
C) 5%.
D) 11%.
Answer: A
Diff: 2
Topic: Section: 7.5
4) If real money demand increases 5% and real money supply increases 10%, by about how
much does the price level change?
A) Falls by 5%
B) Unchanged
C) Rises by 2%
D) Rises by 5%
Answer: D
Diff: 1
Topic: Section: 7.5
25
5) If the income elasticity of money demand is 3/4 and income increases 8%, by about how much
does the price level change?
A) Falls by 6%
B) Unchanged
C) Rises by 6%
D) Rises by 8%
Answer: A
Diff: 1
Topic: Section: 7.5
6) If the nominal money supply grows 5%, real income falls 2%, and the income elasticity of
money demand is 0.8, then the inflation rate is
A) 3.0%.
B) 3.4%.
C) 6.6%.
D) 7.0%.
Answer: C
Diff: 2
Topic: Section: 7.5
7) If the nominal money supply grows 6%, real income rises 2%, and the inflation rate is 5%,
then the income elasticity of money demand is
A) 0.5.
B) 0.75.
C) 1.0.
D) 1.5.
Answer: A
Diff: 2
Topic: Section: 7.5
8) If the nominal money supply grows 10%, the inflation rate is 6%, and the income elasticity of
money demand is 1.0, then real income growth equals
A) 1%.
B) 2%.
C) 3%.
D) 4%.
Answer: D
Diff: 2
Topic: Section: 7.5
26
9) Large differences in inflation rates among countries are almost always the result of large
differences in
A) productivity.
B) real income growth.
C) the growth rates of real money demand.
D) the growth rates of nominal money supplies.
Answer: D
Diff: 1
Topic: Section: 7.5
10) When a government prints money to finance its expenditures, it is likely to cause
A) unemployment.
B) inflation.
C) deflation.
D) reductions in the use of barter.
Answer: B
Diff: 1
Topic: Section: 7.5
11) The most likely explanation for the high inflation rates that countries like Russia and the
Ukraine have suffered is that
A) large inflows of foreign funds increase the money supply, causing inflation.
B) without inflation, these countries would be unable to achieve high rates of growth.
C) borrowing from the central bank is the most expedient method of funding the government's
expenditures.
D) the flood of financial innovations has increased liquidity in these nations' economies.
Answer: C
Diff: 2
Topic: Section: 7.5
12) Bonds sold by the U.S. government that offer a certain real interest rate are known as
A) zero-coupon bonds.
B) Treasury Inflation-Protected Securities.
C) denominalized securities.
D) savings bonds.
Answer: B
Diff: 2
Topic: Section: 7.5
27
13) Calculate the change in the price level for each of the following events, taken one at a time,
with other variables unchanged.
(a) Money supply increases 10%.
(b) Money demand increases 5%.
(c) Money supply decreases 5% while money demand increases 5%.
(d) Money supply increases 15% while money demand increases 5%.
Answer:
(a) 10%
(b) -5%
(c) -10%
(d) 10%
Diff: 1
Topic: Section: 7.5
14) Why did some of the formerly Communist countries of Eastern Europe have inflation rates
over 100%, while others didn't? Which factor was more important in explaining the differing
inflation rates, real money demand or nominal money supply? Why did the countries with high
inflation rates allow inflation to get so high?
Answer: Some countries had high inflation while others didn't because of differences in rates of
money growth. Real money demand didn't vary enough to explain the differences in inflation
rates; instead, nominal money supply growth was strongly correlated with inflation. The
countries allowed inflation to get so high because they were trying to finance government
expenditures by printing money.
Diff: 1
Topic: Section: 7.5
28
Another random document with
no related content on Scribd:
The Project Gutenberg eBook of China under the
Empress Dowager
This ebook is for the use of anyone anywhere in the United States
and most other parts of the world at no cost and with almost no
restrictions whatsoever. You may copy it, give it away or re-use it
under the terms of the Project Gutenberg License included with this
ebook or online at www.gutenberg.org. If you are not located in the
United States, you will have to check the laws of the country where
you are located before using this eBook.
Title: China under the Empress Dowager

Being the history of the life and times of Tzŭ Hsi
Author: Sir E. Backhouse

J. O. P. Bland
Release date: November 4, 2023 [eBook #72032]
Language: English
Original publication: Philadelphia: J. B. Lippincott Co, 1910
Credits: Tim Lindell and the Online Distributed Proofreading Team at

https://www.pgdp.net (This file was produced from images
generously made available by The Internet
Archive/American Libraries.)
*** START OF THE PROJECT GUTENBERG EBOOK CHINA

UNDER THE EMPRESS DOWAGER ***
CHINA UNDER THE EMPRESS
DOWAGER
The “Holy Mother,” Her Majesty Tzŭ Hsi.

(From a Photograph taken in 1903.)
CHINA UNDER THE

EMPRESS DOWAGER
BEING THE HISTORY OF THE LIFE AND

TIMES OF TZŬ HSI
COMPILED FROM STATE PAPERS AND THE

PRIVATE DIARY OF THE COMPTROLLER OF
HER HOUSEHOLD
BY
J. O. P. BLAND and E. BACKHOUSE
ILLUSTRATED
PHILADELPHIA
J. B. LIPPINCOTT COMPANY
London: WILLIAM HEINEMANN
MCMX
Printed in England
NOTE
The thanks of the Authors are hereby gratefully expressed to Miss
Katharine A. Carl, for permission to reproduce the photograph of her
portrait of the Empress Dowager; to Mr. K. Ogawa, art publisher of
Tokyo, for the use of his unique pictures of the Palace at Peking; to
Mr. Geo. Bronson Rea, of the Far Eastern Review, for permission to
reproduce illustrations originally published in that journal; to Messrs.
Betines, of Peking, for the right to publish their views of the capital;
and to the Editor of The Times, for his courtesy in permitting the
inclusion in this volume of certain articles written for that paper.
London, September 10th, 1910.
CONTENTS
PAGE
I
THE PARENTAGE AND YOUTH OF YEHONALA 1
II
THE FLIGHT TO JEHOL 14
III
THE TSAI YÜAN CONSPIRACY 30
IV
THE FIRST REGENCY 51
V
TSENG KUO-FAN AND THE TAIPING REBELLION (1864) 64
VI
TZŬ HSI AND THE EUNUCHS 81
VII
A QUESTION OF ETIQUETTE 110
VIII
MAJORITY AND DEATH OF THE EMPEROR T’UNG-CHIH 117
IX
THE PROTEST AND SUICIDE OF WU K’O-TU 132
X
TZŬ HSI BECOMES SOLE REGENT 148
XI
TZŬ HSI “EN RETRAITE” 161
XII
THE REFORM MOVEMENT OF 1898 178
XIII
THE HUNDRED DAYS OF REFORM 190
XIV
THE COUP D’ÉTAT OF 1898 201
XV
TZŬ HSI RESUMES THE REGENCY (1898) 211
XVI
THE GENESIS OF THE BOXER MOVEMENT 246
XVII
THE DIARY OF HIS EXCELLENCY CHING SHAN 251
XVIII
IN MEMORY OF TWO BRAVE MEN 307
XIX
SIDELIGHTS ON TZŬ HSI’S STATECRAFT 327
XX
THE FLIGHT FROM PEKIN AND THE COURT IN EXILE 340
XXI
HOW THE BOXER LEADERS DIED 363
XXII
THE OLD BUDDHA PENITENT 375
XXIII
THE RETURN OF THE COURT TO PEKING 387
XXIV
HER MAJESTY’S NEW POLICY 417
XXV
THE VALEDICTORY MEMORIAL OF JUNG LU 436
XXVI
HER MAJESTY’S LAST DAYS 443
XXVII
TZŬ HSI’S DEATH AND BURIAL 464
XXVIII
CONCLUSION 476
APPENDIX 499
INDEX 517
LIST OF ILLUSTRATIONS
FACING PAGE
THE “HOLY MOTHER,” HER MAJESTY TZŬ HSI Frontispiece
MAP OF PEKING xii, xiii
THE REGENT PRINCE CH’UN, WITH HIS TWO
SONS, THE PRESENT EMPEROR (STANDING)
AND PRINCE P’U CHIEH 4
THE IMPERIAL DAÏS IN THE CHIAO-TAL HALL 18
H.I.H. P’U JU, COUSIN OF THE PRESENT
EMPEROR, SON OF THE BOXER PRINCE
TSAI-YING, AND GRANDSON OF PRINCE
KUNG 20
HER MAJESTY TZŬ HSI IN THE YEAR 1903 36
EXTERIOR OF THE CH’IEN CH’ING PALACE 54
H.M. TZŬ HSI, WITH THE CONSORT (LUNG YÜ)
AND PRINCIPAL CONCUBINE (JEN FEI) OF
H.M. KUANG-HSÜ, ACCOMPANIED BY COURT
LADIES AND EUNUCHS 90
FACSIMILE OF LETTER WRITTEN BY CHIEF
EUNUCH LI LIEN-YING 98
INTERIOR OF THE YANG HSIN TIEN. (PALACE OF
“MIND NURTURE.”) 122
INTERIOR OF THE I KUN KUNG 148
INTERIOR OF THE TAI HO TIEN 166
CIRCULAR THRONE HALL IN THE GROUNDS OF
THE LAKE PALACE LOOTED BY ALLIED
TROOPS IN 1900 208
PAVILION ON LAKE TO THE WEST OF
FORBIDDEN CITY 208
THE “BEILEH” TSAI YING, SON OF PRINCE KUNG 252
(CASHIERED BY TZŬ HSI FOR PRO-BOXER
PROCLIVITIES), AND HIS SON
H.M. THE EMPRESS DOWAGER AND LADIES OF
HER COURT (1903) 256
THE TA-A-KO, SON OF PRINCE TUAN, THE
BOXER LEADER 280
REPRODUCTION OF PICTURE PAINTED ON SILK
BY HER MAJESTY TZŬ HSI 284
FACSIMILE OF A FRAGMENT OF THE DIARY 299
DAUGHTERS OF A HIGH MANCHU OFFICIAL OF
THE COURT 302
MARBLE BRIDGE IN THE GROUNDS OF THE LAKE
PALACE 350
IN THE GROUNDS OF THE PALACE IN THE
WESTERN PARK 350
HIS HIGHNESS PRINCE TSAI HSÜN 386
VIEW, FROM THE K’UN MING LAKE, OF THE
SUMMER PALACE 452
THE EMPRESS DOWAGER, WITH THE CHIEF
EUNUCH, LI LIEN-YING 454
THE SON OF HEAVEN 458
MARBLE BRIDGE OVER THE LAKE IN THE
WESTERN PARK WHICH SURROUNDS THE
LAKE PALACE 474
“TI WANG MIAO” OR TEMPLE TO THE MEMORY
OF VIRTUOUS EMPERORS OF PREVIOUS
DYNASTIES 474
PORTRAIT OF THE EMPRESS DOWAGER 482
THE IMPERIAL DAÏS IN THE CH’IEN CH’ING HALL 498
CEILING AND PILLARS OF THE TAI HO TIEN 510
INDEX TO NUMBERED MAP OF
PEKING
MAP OF PEKING.
(1) Tung Hua Men, the East Gate Glorious. This is the usual
entrance to the Forbidden City for officials attending audience when
the Court is there resident. (It was here that was suspended in a
basket the head of the foreigner captured by the Boxers on 20th
June.)
(2) Huang Chi Tien, or Throne Hall of Imperial Supremacy. In this
Hall the Empress Dowager, after the return of the Court from exile,
was accustomed to receive her officials in audience on the rare
occasions when she lived in the Forbidden City. It was here that her
remains lay for nearly a year awaiting the day of burial.
(3) Ning Shou Kung, or Palace of Peaceful Longevity. Here the
Old Buddha resided during the siege; here she buried her treasure.
She returned hither after the days of exile and lived in it pending the
restoration of the Lake Palace, desecrated by the foreign occupation.
(4) Chien Ching Kung, or Palace of Heavenly Purity. The Hall in
which China’s Emperors were accustomed to give audience to the
Grand Council. After the Boxer rising, in accordance with the new
ceremonial laid down by the Peace Protocol, the Diplomatic Body
were received here. In this Hall the Emperor Kuang Hsü discussed
and decided with K’ang Yu-wei the reform programme of 1898, and it
was here that his body lay awaiting sepulture between November
1898 and February 1909.
(5) Shen Wu Men, or Gate of Divine Military Genius. Through this,
the Northern gate of the City, the Old Buddha fled in the dawn of the
15th August, 1900.
(6) The Rock-garden in which Her Majesty used to walk during the
days of the siege of the Legations and from which she witnessed the
burning of the Hanlin Academy.
(7) Yang Hsin Tien, or Throne Hall of Mental Growth. In this
Palace the Emperor T’ung-Chih resided during the whole of his
reign.
(8) Hsi Hua Men, or West Gate Glorious. One of the main
entrances to the Forbidden City.
(9) Tai Ho Tien, Throne Hall of Exalted Peace. Used only on
occasions of High ceremony, such as the accession of a new
Emperor, an Imperial birthday celebration, or the New Year
ceremonies.
(10) Shou Huang Tien, or Throne Hall of Imperial Longevity. In this
building the reigning sovereign unrolls on the day of the New Year
the portraits of deceased Emperors, and pays sacrifice to them.
(11) Hsi Yüan Men, Western Park Gate. It is through this that the
Grand Council and other high officials pass to audience when the
sovereign is in residence at the Lake Palace.
(12) At this gate the Emperor was wont to await, humbly kneeling,
the arrival of the Old Buddha on her way to or from the Summer
Palace.
(13) The Altar of Silkworms, at which the Empress Consort must
sacrifice once a year, and where the Old Buddha sacrificed on
occasion.
(14) A Lama Temple where the Old Buddha frequently
worshipped.
(15) Ta Hsi Tien. The Temple of the Great Western Heaven. A
famous Buddhist shrine built in the reign of the Emperor Kang Hsi.
(16) The Old Catholic Church built within the Palace precincts by
permission of the Emperor Kang-Hsi. It was converted by the
Empress Dowager into a Museum in which was kept the collection of
stuffed birds made by the missionary Père David. Eye-witnesses of
the siege of the French Cathedral in 1900 have stated that the
Empress and several of the ladies of the Court ascended to the roof
of this building to watch the attack on the Christians; but it is not
likely that they exposed themselves for any great length of time in
what must have been a dangerous position.
(17) Tzu Kuang Ko: Throne Hall of Purple Effulgence. The building
in which the Emperor is wont to receive, and entertain at a banquet,
the Dalai and Panshen Lamas and certain feudatory chiefs. Before
1900, Foreign Envoys were also received here.
(18) Ching Cheng Tien, or Throne Hall of Diligent Government.
Used for the audiences of the Grand Council when the Court was in
residence at the Lake Palace.
(19) Li Yüan Tien: Throne Hall of Ceremonial Phœnixes. Part of
the Empress Dowager’s new Palace, built for her in the early years
of Kuang Hsü’s reign. Here she received birthday congratulations
when resident at the Lake Palace, and here she gave her valedictory
audience, just before her death.
(20) Ying Tai, or Ocean Terrace, where the Emperor Kuang Hsü
was kept under close surveillance after the coup d’état in 1898, and
which he never left (except on one occasion when he attempted to
escape) between September 1898 and March 1900. By means of a
drawbridge, this Ocean Terrace was made a secure place of
confinement. After the return of the Court in 1902, His Majesty lived
here again, but under less restraint, and it was here that he met his
death.
(21) At this point stood the high mound which Her Majesty is
reported to have ascended on the night of 13th June, 1900, to watch
the conflagrations in various parts of the city.
(22) The White Pagoda, built in the time of the Yüan dynasty (circa
1290 a.d.), when the artificial lake was also made.
(23) Wan Shou ssŭ, the Temple of Imperial Longevity. Here the
Empress was accustomed to sacrifice on her journeys to and from
the Summer Palace.
(24) The residence of Ching Shan, where the Diary was written.
(25) The residence of Wen Lien, Comptroller of the Household and
friend of Ching Shan.
(26) Residence of Jung Lu.
(27) Place of the Princess Imperial, the daughter of Prince Kung,
whom the Empress Dowager adopted.
(28) Birthplace of the present infant Emperor, Hsüan T’ung, son of
Prince Ch’un and grandson of Jung Lu. In accordance with
prescribed custom, it will be converted into a shrine.
(29) Birthplace of H.M. Kuang Hsü. Half of this building has been
converted into a shrine in honour of His Majesty, and the other half
into a memorial temple to the first Prince Ch’un, grandfather of the
present infant Emperor.
(30) Pewter Lane, where Yehonala was born.
(31) Palace of Duke Chao, younger brother of Tzŭ Hsi.
(32) Palace of Duke Kuei Hsiang, elder brother of Tzŭ Hsi and
father of the present Empress Dowager.
(33) At this point was erected the scaffolding from which guns
were trained on the Legations. The soldiers on duty here were
quartered in the house of Ching Shan.
(34) The execution ground where were put to death the Reformers
of 1898 and the Ministers who, in 1900, protested against the attack
on the Legations.
(35) The residence, in 1861 of Tsai Yüan, hereditary Prince Yi,
who was put to death by Tzŭ Hsi for usurping the Regency.
(36) Residence of Tuan Hua, the Co-Regent with Tsai Yüan, also
allowed to commit suicide in 1861.
(37) The Imperial Clan Court, in which is the “Empty Chamber,”
where the usurping Princes met their death.
(38) Residence of the “Beileh” Tsai Ying, son of Prince Kung,
cashiered for complicity in the Boxer rising.
(39) The site of the Chan-Ta-ssu, a famous Lama Temple,
destroyed by the French in 1900 for having been a Boxer drilling
ground.
(40) Residence of the Chief Eunuch, Li Lien-ying.
(41) Now the Belgian Legation premises, but formerly the
residence of the Boxer protagonist, Hsü T’ung, that fierce old
Imperial Tutor whose ambition it was to have his cart covered with
the skins of foreign devils.
(42) The Imperial Canal, by way of which the Old Buddha used to
proceed in her State barge to the Summer Palace.
(43) The graves of the Empress Dowager’s parents. They are
adorned with two marble pillars, bearing laudatory inscriptions.
(44) Here was erected the temporary railway station at which the
Empress alighted on her return from exile.
(45) In the north-west corner of the enceinte of the Chien Men, a
shrine at which the Empress Dowager and the Emperor sacrificed to
the tutelary god of the dynasty (Kuan Yü), the patron saint of the
Boxers.
(46) At this point many Christians were massacred on the night of
13th June, 1900.
(47) Palace of Prince Chuang, the Boxer leader, mentioned by
Ching Shan as the place where the Christians were tried.
(48) Residence of Yüan Ch’ang, where he was arrested for
denouncing the Boxers.
(49) Residence of the Grand Secretary, Wang Wen-shao.
(50) Residence of Yang Li-shan, the President of the Board of
Revenue, executed by order of Prince Tuan.
(51) Residence of Duke Lan, the Boxer leader. At present
occupied by Prince Pu Chün, the deposed Heir to the Throne and a
most notorious reprobate.
(52) Tzŭ Ning Kung, or Palace of Maternal Tranquillity, where the
Empress Dowager Tzŭ An resided during most of the years of the
Co-Regency.
(53) Chang Ch’un Kung, or Palace of Perpetual Spring, where Tzŭ
Hsi resided during the reign of T’ung-Chih.
(54) Residence of the actors engaged for Palace performances.
(55) The Nei Wu Fu, or Imperial Household Department Offices.
(56) The Taoist Temple (Ta Kao Tien), where the Emperor prays
for rain or snow.
(57), (58) In these two Palaces resided the chief Imperial
concubines. After Tzŭ Hsi’s resumption of the Regency in 1898,
Kuang Hsü and His Consort occupied small apartments at the back
of her Palace, on the brief visits of the Court to the Forbidden City.
(59) Chung Ho Tien, or Throne Hall of Permanent Harmony. Here
H.M. Kuang Hsü was arrested in September 1898 and taken away to
confinement in the “Ocean Terrace.”
I
THE PARENTAGE AND YOUTH OF YEHONALA
The family of Yehonala, one of the oldest of the Manchu clans,

traces its descent in direct line to Prince Yangkunu, whose daughter
married (in 1588) Nurhachu, the real founder of Manchu rule in
China and the first direct ancestor of the Ta Ching Emperors.
Yangkunu was killed at Mukden in 1583, in one of his raids upon the
territories which still owed allegiance to the degenerate Chinese
sovereign Wan Li. His clan lived and flourished in that region, near
the Corean border, which is dominated by the Long White Mountain,
the true cradle of the Manchu stock. He and his people seem to have
acquired the arts of war, and much lust of conquest, by constantly
harassing the rich lands on their ever-shifting borders, those rich
lands which to-day seem to be about to pass under the yoke of new
invaders. Yangkunu’s daughter assumed the title of Empress by right
of her husband’s conquests, and her son it was who eventually
wrested the whole of Manchuria from the Ming Dynasty and reigned
under the name of Tien-Ts’ung.
Into this clan, in November 1835, was born Yehonala, whose life
was destined to influence countless millions of human beings,
Yehonala, who was to be thrice Regent of China and its autocratic
ruler for over half a century. Her father, whose name was Hui Cheng,
held hereditary rank as Captain in one of the Eight Banner Corps.
Considering the advantages of his birth, he was generally accounted
unsuccessful by his contemporaries; at the time of his death he had
held no higher post than that of an Intendant of Circuit, or Taotai.
Holding this rank in the province of Anhui, he died when his daughter
was but three years of age. His widow and family were well cared for
by a kinsman named Muyanga, father of her who subsequently
became Empress Consort of Hsien-Feng and Co-Regent with

Macroeconomics 8th Edition Abel Test Bank instant download all chapter

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Macroeconomics 8th Edition Abel Test Bank instant download all chapter

Uploaded by

Copyright:

Available Formats

Macroeconomics 8th Edition Abel Test

Macroeconomics 9th Edition Abel Test Bank

Macroeconomics Canadian 7th Edition Abel Test Bank

Macroeconomics Canadian 6th Edition Abel Test Bank

Macroeconomics 9th Edition Abel Solutions Manual

Macroeconomics Canadian 6th Edition Abel Solutions

Macroeconomics 8th Edition Mankiw Test Bank

Macroeconomics Canadian 8th Edition Sayre Test Bank

Macroeconomics for Today 8th Edition Tucker Test Bank

7.1 What Is Money?

1) A disadvantage of the barter system is that

3) In economics, money refers to

6) The following are all functions of money EXCEPT

14) M1 does not include

15) Which of the following is not part of M1?

16) Which of the following statements about M1 and M2 is true?

19) M2 does not include

20) Over half of U.S. currency is

22) We shouldn't be concerned about U.S. currency held abroad because

27) What function is money playing in each of these situations:

7.2 Portfolio Allocation and the Demand for Assets

1) People's best guesses about returns on assets are called

2) The set of assets that a holder of wealth chooses to own is called

4) The risk premium is

8) Compared with money, bonds have

10) The least liquid asset on this list is

Use that information to answer the following questions.

7.3 The Demand for Money

1) A 10% decrease in real income usually leads to ________ in money demand.

2) A 5% increase in real income usually leads to ________ in money demand.

5) The opportunity cost of holding currency decreases when

20) Money demand is given by

26) Suppose the money demand function is

7.4 Asset Market Equilibrium

1) Under a situation of asset market equilibrium,

7) Suppose the real money demand function is

8) Suppose the real money demand function is

Title: China under the Empress Dowager

Author: Sir E. Backhouse

Release date: November 4, 2023 [eBook #72032]

Original publication: Philadelphia: J. B. Lippincott Co, 1910

Credits: Tim Lindell and the Online Distributed Proofreading Team at

*** START OF THE PROJECT GUTENBERG EBOOK CHINA

The “Holy Mother,” Her Majesty Tzŭ Hsi.

CHINA UNDER THE

BEING THE HISTORY OF THE LIFE AND

COMPILED FROM STATE PAPERS AND THE

The family of Yehonala, one of the oldest of the Manchu clans,

You might also like