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IF the marginal propensity to consume is 80 percent, an increase in the national income of R100 billion would
Explain, with the aid of a graph, what will happen to the rand/dollar exchange rate and the equilibrium quantity of dollars if South African exports to the United States increase.
(Hint: In your answer, also comment on the effect on the current account of the balance of payments as well as on the level of domestic prices.)
A stimulus package worth R500 billion was designed and by government of South Africa in 202 to keep businesses and households afloat. If the marginal propensity to consume equals 0.75, and R500 billion equals to the change in government spending (∆�), how does change in government affected output and employment? [7 marks] Do you think the size of the multiplier is justifiable in the context of South Africa? [3 marks].
1 will worsen the current account balance but improve domestic price
2 improve the current account balance but worsen domestic price
3 improve the current account balance as well as reduce domestic price
4 worsen both balance in the current account as well as domestic price
demand?
demand?
diagram to explain the three main characteristics of the consumption function.
three possible relationships between production, income and
spending in macroeconomic theory.
Explain, with the aid of a graph, what will happen to the rand/dollar exchange rate and the equilibrium quantity of dollars if South African exports to the United States increase.
(Hint: In your answer, also comment on the effect on the current account of the balance of payments as well as on the level of domestic prices.)
