Macroeconomics Answers

Questions: 9 856

Answers by our Experts: 9 669

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Search & Filtering

in the circular flow of income and spending, financial institutions....


  1. act as an intermediary between those who have surplus funds and those who have 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 is no need to provide funds to deficits units.
  4. generally exist to collect investment spending and transform it into savings.
Suppose the demand for money is L=0.20Y, the money supply is 200, consumption:
C=90+0.80YD, taxes T=50, Investment: I=140-5r, and government purchases: G=50.
ii) Find equilibrium output, and the rate of interest
Can a good be a Final good in one case and an Intermediate good in another case? Explain with an example. h Online Classes
Why developed countries use progressive tax system?

Why do economic problems arise


The following functions pertain to the loanable funds market of a hypothetical country:
DL= 41 - 7r
SL = 5 + 2r
DL = SL
Where DL is demand for loanable funds, SL is supply of loanable funds and r is the real interest rate.
a) Find the equilibrium values of r, DL and SL.
b) If there is GHȼ81 million-bond financed increase in government expenditure, find:
i) The new equilibrium values of r, DL and SL.

The following equations refer to the goods market of an economy in billions of euros:

C=480 +0,5Yd

I=110

T=70

G=250

1.Solve for goods market equilibrium 

2.Find equilibrium disposable income

3.find equilibrium consumption 

4.calculate the private savings,public savings and investment spending



Two firms dominate the cinema industry in South Africa: Ster‐Kinekor and Nu Metro. Although these firms essentially offer a homogeneous product, each firm attempts to differentiate itself in the eyes of customers.
Marks will be awarded for your ability to integrate theory with the scenario provided.
Q.4.1
Identify the type of market/industry structure that is applicable to the cinema industry in South Africa. Justify your answer by referring to the main characteristics of this market structure.
(4)
Q.4.2 Explain the concept of non‐price competition in the context of the cinema industry (6) using examples to illustrate your answer.
Q.4.3 Government may prevent possible abuse of market power by these firms within the (5) industry. How would the government achieve this?
In the Namibian economy, the commercial banks have deposits of N$600 billion. Their reserves are N$60 billion. All reserves are in deposits with the Bank of Namibia and the commercial banks hold no excess reserves. There is N$120 billion in Bank of Namibia, notes outside the banks, and there are no coins.
a) What is the economy's monetary base? (5 marks)
b) What is the quantity of money in the economy?

3) Which of the following is not an injection into the circular flow of income and expenditure?

            a)  Exports

            b)  Investment

            c)  Savings

            d)  Government Spending


LATEST TUTORIALS
APPROVED BY CLIENTS