Macroeconomics Answers

Telecom Namibia is considering the purchase of a machine which cost 100 thousand dollars, and which has a lifespan of only two years, after which it has a zero scrap value. This investment, if undertaken, will generate gross return of 53 thousand dollars and 84 thousand dollars at the end of the first year and second year, respectively, after deducting all the cost except depreciation and interest rate cost. Should Telecom Namibia go ahead with this investment when the prevailing rate of interest is 18 percent? Explain

Please consider the following assumptions for the fractional banking system:

• Banks hold 10% reserves against checking deposits;
• Individuals and corporations divide their monetary assets as 20% cash and 80% deposit; and
• Banks loan their excess reserves to earn profits.

Considering these assumptions, how does $1,000 deposit into an economy multiply? (Money Multiplier Effect) Please explain step-by-step changes in the money supply?

2)How does the money get depleted how much does the bank keep holding back every time?

3)What is the money multiplier it should be from the range of 2.5 to 4. It should not be more.

Determine

d²y

dx²

, if 2x³ − 3y² + 7xy = 0

An organisation’s culture, values and structure are all variables in the organisation's

The Covid-19 crisis and lockdown has been a supply-side shock to the South African economy. In response, the government offered a R500bn stimulus package to help cushion the blow. Use the AD-AS model, in conjunction with the IS-LM-BP, to explain the supply and demand dynamics of the shock and policy response. Where will equilibrium income and prices settle? Draw the graphs and explain the complete chain reaction.

If consumption is C=100+0.75Yd

Taxes is T=50+0.5Y

Export is X=200

Import is M=50+0.25Y

Government spending is G=150

Investment is I=200. Y is domestic income and Y is private disposable income. Determine the trade balance at equilibrium

If consumption is C=100+0.75Yd

Taxes is T=50+0.5Y

Export is X=200

Import is M=50+0.25Y

Government spending is G=150

Investment is I=200. Y is domestic income and Y is private disposable income. Determine the surplus or deficit in the government budget at equilibrium

Evaluate, with the use of an appropriate diagram(s), whether fiscal policy will always be successful at reducing an output gap. (25 marks)

What conditions in the medical-care industry likely account for the fact that Americans as a whole have been spending more money on medical care in the past several decades? Explain fully using the market model.

How has the covid 19 pandemic impacted on the South african economy? Explain your answer by using the framework and statistics around the objectives of economic policy

Economic growth, low levelz of unemployment, price stability, balance of payment equilibrium, balanced budget and equity in distribution