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Discuss whether a government should encourage an increase in savings
Analyse how a central bank might reduce household borrowing
Critically evaluate the economic imbalances that Latvia experienced and recommend the policy options that could have been adopted in order to manage each of them
Assume that the federal government passes an investment tax credit law that encourages firms to invest more. How would this change impact the market for loanable funds? What happens to the interest rate and the quantity of loanable funds at equilibrium. How would this affect overall investment in the economy (I in Y = C + I + G + NX)?
what variable will shift the position of IS scgedule?explain how a change in each variable will shift the schedule?
Question 2 : A Model with a Different Monetary Policy Rule

(a) (10 points) Combine the AS/AD and Monetary Policy equations so that you can plot
them on a c1, 1 graph. What is the impact of introducing c on the relative slopes of the
AS/AD lines?
(b)
Identify the advantages and disadvantages of international trade for workers?
Which one of the following statements is correct?
1. Eskom is an example of a nationalised entity 2. Nationalization will attract foreign direct investment, which will increase foreign reserves 3. The transfer of ownership from a private enterprise to the government is called nationalisation 4. Nationalising an organisation wold increase efficiency
B Which of the following correctly states how government spending is financed? 1 taxes, borrowing and income from government owned property 2 taxes, gold reserves and income from private owned property 3 borrowing, gold reserves and government owned property 4 taxes, borrowing and gold reserves
A. To whom does the government provide public goods and services?
1.households only 2. firms only 3.both households and firms 4.the local government only B. The role of government is threefold.What are the three broad functions of government. 1. allocative, dispersal and stabilisation functions 2. allocative, dispersal and equitable distribution functions 3.allocative, equitable distribution and stabilisation functions 4. equitable distribution, dispersal and stabilisation functions
what variable will shift the position of IS scwhat variable will shift the position of IS scgedule?explain how a change in each variable will shift the schedule?gedule?explain how a change in each variable will shift the schedule?
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