Answer to Question #95939 in Macroeconomics for Ivan Swart

Question

To what extent is South Africa's monetary and fiscal policies helping to boost the country's economy?

Answer 1

When South Africa adopts an expansionary fiscal policy in which the budget is incremental over the years alongside low inflation targeting of between 3% and 6%, the economy responds positively through an increased GDP growth.Increased money supply and low interest rates have unanimously helped boost consumer spending and economic growth.