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Answer to Question #134356 in Macroeconomics for Mcedisi
Question #134356
An increase in criminal activity in South Africa acts as a deterrent to foreign tourists
considering visiting South Africa, and as a result, there is a decline in the number of
American tourists to South Africa.
Explain, with the aid of a graph, the effect of this on the rand/dollar exchange rate
and the equilibrium quantity of dollars.
considering visiting South Africa, and as a result, there is a decline in the number of
American tourists to South Africa.
Explain, with the aid of a graph, the effect of this on the rand/dollar exchange rate
and the equilibrium quantity of dollars.
Expert's answer
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You are given the following information about a closed economy with no government: Consumption = 115 + 0.6Y Investment = 550 Use the above information to answer the questions that follow: Q.4.1 Calculate the value of autonomous spending. Q.4.2 Calculate the value of the multiplier. Q.4.3 Calculate the equilibrium level of income. Q.4.4 Is the equilibrium level of income also the full employment level of income? Explain your answer. Q.4.5 Identify any three non‐income determinants of consumption.
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