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[1] M2 plus all short-term and medium-term deposits of the domestic private sector
with monetary institutions.
[2] M1 plus all short-term and medium-term deposits of the domestic private sector
with monetary institutions.
[3] M2 plus all long-term deposits of the domestic private sector with monetary institutions.
[4] M2 plus all medium-term deposits of the domestic private sector with monetary institutions.
If the Minister of Finance wanted to withdraw funds from the economy using the flows of income, spending and production, you would advise him to …
[1] increase government spending to firms.
[2] decrease government spending to firms.
[3] increase spending on public goods and services.
[4] increase taxes received from households.
stability is met.
Choose the correct answer
In the circular flow of income and spending, financial institutions
1. Act as an intermediary between those who have surplus funds and those who deficit funds
2. Are not always useful,as households generally spend all their available funds
3. Create an injection into the flow by collecting savings from participants with surplus units only; therefore there's no need to provide funds to deficit units
4. Generally exist to collect investment spending and transform it into savings
increased significantly over the past decades. Explain any two reasons for this trend.
Identify the main determinant of each component.
In your graph, illustrate each component as well as the total demand for money.
Many economists argue that the South African government should implement a policy of privatisation.
Argue in favour of a policy of privatisation.
Identify the main determinant of each component.
In your graph, illustrate each component as well as the total demand for money.
Explain, with the aid of a graph, the impact of a cut in the interest rate on the
demand for money.
Show the 4-Step Approach in the text box below.
#339914 on Dec 2023