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Which of the following statements is/are correct?a.The initial impact of a change in taxation is on the goods market.b. A change in government spending only influences the goods market and has no impact on the financial market. c. The initial impact of a change in the interest rate is on the financial market after which it influences the goods market. d. If the investor confidence in the economy worsens, the impact will be first on the financial market, and then the goods market.
Which of the following statements are correct? a.The nominal value of a good is its value in terms of money while the real value is its value in terms of some other good, service, or bundle of goods. b.The nominal quantity of money is the quantity of money expressed in terms of its purchasing power in terms of goods.c.A decline in the general price level results in a decrease in the real quantity of money and fewer goods and services can be bought. d.If the nominal quantity of money is R500 and the price level is R20, then the real quantity of money is 25. e.Given the price level, the nominal quantity of money divided by the price level defines the real quantity of money.
Which of the following statements is/are correct?a.The IS curve represents the combinations of the level of output and income and the interest rate where the financial market is in equilibrium.b.The IS curve represents the combinations of the level of output and income and the interest rate where the goods market is in equilibrium. c.To derive the IS curve, we change the level of output and income to determine the effect on the interest rate.d. In deriving the IS curve, we assume that an increase in interest rate decreases the level of investment spending, shifts the ZZ curve downwards,and reduces the level of output and income
Assume that you are an agricultural economist and you
have been specialized in production economics as well.
Farmers in the area complain that they run the farm
business at a loss. Therefore, they seek your advice to make
their production profitable and finally maximize profit. As
you are an expertise in the area of production economics,
how do you advise them to solve their problem? Use
graphical illustrations when and where necessary.
Discuss in the context of any one of the South Pacific Island countries the following: Use data analysis and or graphs where applicable.
- What are three major categories of transactions in the current account (CA)?
- Analyze CA data for the country over the last 5 years (2015-2019) – what are the trends and their macroeconomic implications?
- What is the link between current account balance (CA) and Net International Investment Position (NIIP)?
- Calculate Net International Investment Position (NIIP) as percentage of GDP for the Country - what does it indicate?
Obtain data on Balance of Payments, Current Account and Net International Investment Position. Data can be obtained from many sources – country’s government statistical department or data.imf.org > data sets> International Financial Statistics. Quarterly review of Reserve Banks/Central Banks can also be used. For better analysis, get quarterly data if possible.
characteristics of denel as a monopoly
The following equations describe an economy (think of C, I, G, etc as being measured in billions and i as a percentage; a 5 percent interest rate implies i = 5)
C = 0.8 (1 – t) Y
t = 0.25
I = 900 – 50i
G = 800
L = 0.25Y – 62.5.i
M / P = 500
Show that a given change in the money stock has a larger effect on output the less interest sensitive is the demand for money.
The following equations describe an economy (think of C, I, G, etc as being measured in billions and i as a percentage; a 5 percent interest rate implies i = 5)
C = 0.8 (1 – t) Y
t = 0.25
I = 900 – 50i
G = 800
L = 0.25Y – 62.5.i
M / P = 500
How does the increase in tax rate affect the equilibrium level of income?
The following equations describe an economy (think of C, I, G, etc as being measured in billions and i as a percentage; a 5 percent interest rate implies i = 5)
C = 0.8 (1 – t) Y
t = 0.25
I = 900 – 50i
G = 800
L = 0.25Y – 62.5.i
M / P = 500
Show that a given change in the money stock has a larger effect on output the less interest sensitive is the demand for money.
Review the last year’s COVID19 supplementary budget of Fiji (available online) and discuss if the initiatives are adequate to mitigate the pandemic. Discuss the drawbacks, and explain how they may be improved.
