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Macroeconomics
A. Which one of the following statements is true about the South African Reserve Bank?
1 The SARB uses accommodation policy to drain excess liquidity from the banking system. 2 It accepts deposits from individuals 3 It is not the only bank that can issue more 4 It is the banker to the government B. Which of the following statements is incorrect?
1 The quantity is determined by the interaction of the demand for money and interest rate 2 If interest rates are high, the quantity of money demanded will tend to be low 3 If interest rates are low, the quantity of money demanded will tend to be high 4 There is a positive relationship between interest rates and the quantity of money
1 The SARB uses accommodation policy to drain excess liquidity from the banking system. 2 It accepts deposits from individuals 3 It is not the only bank that can issue more 4 It is the banker to the government B. Which of the following statements is incorrect?
1 The quantity is determined by the interaction of the demand for money and interest rate 2 If interest rates are high, the quantity of money demanded will tend to be low 3 If interest rates are low, the quantity of money demanded will tend to be high 4 There is a positive relationship between interest rates and the quantity of money
Macroeconomics
Which one of the following statements is incorrect?
1 As interest rates increase, bond prices decrease. 2 As interest rates decrease, bond prices increase.
3 There is a positive relationship between interest rate and bond prices. 4 If interest rates are high, the quantity of money demanded will tend to be low.
1 As interest rates increase, bond prices decrease. 2 As interest rates decrease, bond prices increase.
3 There is a positive relationship between interest rate and bond prices. 4 If interest rates are high, the quantity of money demanded will tend to be low.
Macroeconomics
Calculate the market equilibrium if the equation for a market demand curve is Qd = 100 - 0,5P and the equation for market supply curve is Qs = -20 + P.
Macroeconomics
Explain the usefulness of Price Elasticity
Macroeconomics
A. Aggregate spending will increase if...
1. Real wealth falls
2. Interest rate falls
3. Consumption falls
4. Investment falls
B. Inflation is likely to....
1. Reduce the cost of living
2. Raise the standard of living
3. Reduce the purchasing power of a currency
4. Increase the purchasing power of a currency
1. Real wealth falls
2. Interest rate falls
3. Consumption falls
4. Investment falls
B. Inflation is likely to....
1. Reduce the cost of living
2. Raise the standard of living
3. Reduce the purchasing power of a currency
4. Increase the purchasing power of a currency
Macroeconomics
A. Which of the following is incorrect about imports in the Keynesian model?
1. They not always taken as independent of the level of income
2. Increase when the level of income increases
3. Decrease when the level of income decreases
4. They may be greater than exports
B. C=100+0,80Y, what is the savings function in the simple Keynesian model?
1. S=-100+0,20Y
2. S=100+0,20Y
3. 0,20
4. 5
1. They not always taken as independent of the level of income
2. Increase when the level of income increases
3. Decrease when the level of income decreases
4. They may be greater than exports
B. C=100+0,80Y, what is the savings function in the simple Keynesian model?
1. S=-100+0,20Y
2. S=100+0,20Y
3. 0,20
4. 5
Macroeconomics
b. At prices of P1 = $5 and P2 = $6 quantities demanded are Q1 = 30 - 2*5 = 20, Q2 = 30 - 2*6 = 18, so the arc elasticity is:
Ed = (18 - 20)/(6 - 5)*(6 + 5)/(18 + 20) = -2/1*11/38 = -0.579. please give me formula because arc elasticity formula is different
Ed = (18 - 20)/(6 - 5)*(6 + 5)/(18 + 20) = -2/1*11/38 = -0.579. please give me formula because arc elasticity formula is different
Macroeconomics
Explain why each of the following statements is True, False, or Uncertain according to economic
principles. Use diagrams where appropriate. Unsupported answers will receive no marks.
the explanation is important.
A5-1. The transaction of a consumer who buys a “meal-kit” sent to their home adds less to GDP than a similar
consumer who goes out to a restaurant for the same meal.
principles. Use diagrams where appropriate. Unsupported answers will receive no marks.
the explanation is important.
A5-1. The transaction of a consumer who buys a “meal-kit” sent to their home adds less to GDP than a similar
consumer who goes out to a restaurant for the same meal.
Macroeconomics
"A number of politicians, policy advocates and employees demanded that minimum wage rates should increase in Fiji." Use PICs as an example to discuss the nominal and real effect of an increase in minimum wage rates.
Macroeconomics
Explain why certain firms practice price discrimination?
