Answer to Question #219952 in Macroeconomics for vee

Question

19. How is the multiplier affected by a decrease in leakages from the Keynesian model with a government?

1] it decreases [2] it increases [3] no change [4] multiplier is not affected 

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20. In the Keynesian model, expansionary fiscal policy will result in a(n) …

[1] increase in inventories. [2] decrease in total income. [3] increase in total spending. [4] decrease in the value of the multiplier.

 

21. Which one of the following authorities is responsible for fiscal policy in South Africa?

[1] The South African Reserve Bank (SARB) [2] The National Treasury [3] South African Revenue Services (SARS) [4] Statistics South Africa (STATSSA) A Y 45₀ A’ A 0 𝐴ҧ80

 

22.In the Keynesian model, an increase in interest rates will result in …

[1] a downward movement along the investment curve. [2] an upward shift of the aggregate spending curve. [3] a downward shift of the aggregate spending curve. [4] a leftward shift of the money market curve

 

Answer 1

19. (2) the multiplier increases

20. (3) expansionary fiscal policy will result in an increase in total spending

21. (2) The National Treasury is responsible for fiscal policy in South Africa.

22. (1) An increase in interest rates will result in a downward movement along the investment curve .