Macroeconomics Answers

An expansionary fiscal policy would most likely cause which of the following changes in output and

interest rates?

"An increase in money supply leads to a balance of payments deficit regardless of the degree of capital mobility". Explain whether this is true or false

An increase in money supply leads to a balance of payments deficit regardless of the degree of capital mobility". Explain whether this is true or false.

What are the economic implications of the policy decision of the Central Bank? If 

the Central Bank did not intervene in purchasing foreign exchange, what would 

have been the result?

. Assume that the equations below describe the expenditures within a particular macroeconomy and that these equations conform to the assumptions we've made in lecture regarding the fixed price level Aggregate Expenditure model. All values for expenditure and income are dollar amounts, but for simplicity, we've dropped the $ below. 

C = 0.8(DI) + 4000C = Consumption expenditure, DI = Disposable IncomeI = 4000I = Investment expenditureG = 8000G = government expenditureX = 2600X = spending on exportsM = 3600M = spending on importsDI = Y - TY = real GDP, T = tax revenues/>T = 5000 

a. The equilibrium real GDP in this economy is 

b. The value of the government expenditure multiplier within this economy is 

c. The value of the tax multiplier within this economy is

Consider an economy in which production function is characterized by the following neoclassical function. Suppose, again tat it has a saving rate of 0.1, a population growth rate of 0.02, and average depreciation rate of 0.03

Y= K^0.6 N^0.4

1. Given the neoclassical production function, what is the labor share of income?
2. Given the neoclassical production function, what is the capital share of income? 
3. What is the value of the steady-state value of capital-labor ratio or k?
4. What is the value of the steady-state value of per-capita output or y

If an individual has a net worth of R68,000 this means that ________

A. the individual has assets worth R68000 and has liabilities greater than Zero but

less than R68 000.

B. they value of their assets R68,000 is the same the value of their liabilities

R68,000.

C. the difference between their assets and liabilities is R68,000.

D. their liabilities are greater than their assets by R68,000.

E. they have assets worth R68,00