The spectroscopic and dielectric properties of liquid water under an ambient condition are studied via a molecular dynamics (MD) computer simulation method. By employing the recent TAB/10D potential model [B. D. Bursulaya, J. Jeon, D. A. Zichi, and H. J. Kim, J. Chem. Phys. 108, 3286 (1997)], the evolving solvent electronic structure is incorporated into the simulation. Thus both the induced dipole and polarizability variations of individual water molecules with the fluctuating nuclear configuration are accounted for. The MD results on far-IR absorption, depolarized Raman scattering (DRS) and optical Kerr effect (OKE) spectroscopy are in reasonable agreement with experiments. It is found that the nonlinear electronic response of water to its fluctuating environment plays an important role in the DRS and OKE; it significantly enhances the contribution of the water librational motions to the spectra, compared with that of hindered translations. This indicates that not only molecular dynamics but also accompanying electronic structure modulations are essential to quantitative understanding of various electronic spectroscopy. The effects of H/D isotope substitution are briefly discussed.