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thus to economic growth? Why is the financial sector important in macroeconomics debates?
4 pages.
1. Given y = (x, z) = 6x2 + 3xz4 where
X(B, E, T) = B2 + 2E + TB
Z(B, E, T) = (ETB)1 + B + E Then, find the partial derivatives of y with respect to B, E, and T.
Consider the market for loanable funds. If expectations about South Africa’s future economic
performance are negative such that firms cancel plans to build new equipment and factories, then in the
short run we would expect:
Briefly explain the weakness of the RSAs industrial development zones
I. The supply of funds increases and the interest rate decreases
ii.The supply of funds increases and the interest rate increases
iii.The supply of loanable funds decreases and the interest rate decreases
iv. The supply of funds decreases and the interest rate increases
i. Demand for loanable funds to increase
ii. Supply of loanable funds to decrease
iii.supply wi increase and demand for loanable funds to decrease
iv. Interest rate to decrease
1. Given C=20+0.8YD, I=20+5i, G=500, X=400, and T=200.
a). Derive the IS equation
b). Find the value of the multiplier
c). Find the equilibrium consumption
2. Assuming Government spending increases by 50% and investment reduces by 10%, what happens to the IS equation
How does exports and imports can benefit a company like Volkswagen in relation to resources
