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when I-50?
a fiscal change so that the tax rate, t, increases by 0.05 and the government spending increases by
50, will the budget surplus go up or down? Why?
62.5 and t 0.25
a) what is the equilibrium level of income?
b). what is the value of the new multiplier? Why is this less than the multiplier in the earlier
problem?
c) what is the value of the budget surplus(BS) when1=507
d). What is BS when investment increases to 1007
e). Assuming that the full employment level of income Y-1200, what is the full employment BS* when I=50
Covid 19 has caused an economic shock around the globe. Most important economic indicators are widely affected by the shock..
Effects of covid 19 on employment output, inflation
Policy recommendations on the effects of covid 19 on unemployment output and inflation
Discuss the economic effects of covid 19 on employment, output and inflation in south africa
Suppose the simplified consolidated balance sheet shown below is for the entire commercial banking system. All figures are in billions of rands. The reserve ratio is 9%.
Table 2: Simplified Consolidated Banking System Balance Sheet
Assets
Reserves R70.5
Securities R219.5
Loans R160
Liabilities
Deposits R450
Based on the information above: The Money multiplier is_______. The value of excess reserves in the commercial banking system is ___ billion. If these excess reserves were loaned out, ceteris paribus, the total value of additional loans created would be___ billion.
0.09; R30,5; R160
11,11; R30; R1778
11,11; R30; R 333
40.5; R30; R5,6
MR Bank has the following balance sheet:
Table 3: MR Bank balance sheet
Assets
Required Reserves X
Excess Reserves R50 million
Liabilities
Deposits Y
The required reserve ratio is 10%. What is the value of MR bank’s deposits?
R 45 million.
R 10 million.
R 55.6 million.
R 50 million.
The demand curve for money will shift to the left if:
- I. Real GDP increases.
- II. Real GDP decreases.
- III. The interest rate increases.
- IV. The interest rate decreases.
(II) and (III) are correct.
(I) and (IV) are correct.
(II) and (IV) are correct.
Only (II) is correct.
Which of the following is correct in respect of “money as a medium of exchange”:
- Money facilitates the exchange of goods.
- Money reduces or eliminates the need for barter.
- Money is an object that sellers will accept as payment.
only iii is correct
only i is correct.
i, ii and iii are correct.
only i and ii are correct.
