Macroeconomics Answers

Paul lends R10000 to his friend steven for one. They agree that steven would pay the R10000 back with 5% interest at the end of the year. If the inflation rate is 6% at the end of the year, which of the following would be true for the real value of the amount that steven pays back?

Contractionary demand management policies tend to …

Suppose that the central bank reduces the repo rate. What will happen in the AD-AS model?

(a) Investment decreases

(b) Aggregate demand increases

(c) Consumption increases

(d) Income decreases

(e) Prices increase

Suppose South Africa does not export nor import, but there is a government sector. Therefore, South Africa’s total spending formula can be written as…

In an open economy, the depreciation of the rand against the dollar would result in what?

Which of the following variables will not influence the quantity of money that an individual demands?

• A. money stock
• B. the income level
• C. the interest rate level
• D. the price level

If banks experience liquidity shortages, they can borrow from the Reserve Bank through...

Suppose the SARB increases repo rate in an attempt to decrease inflation. As a result, the

In the 2015 budget speech, the Minister of Finance announced an increase in taxes amounting to R17 billion in the 2015/16 financial year. In the context of the circular flow, this increase in taxes will be a(n) 

Where 

C=250+0.75Yd

I=350

G=800

X=500

M=200+0.4Y

T=0.15Y

Use the above information to answer the following questions 

1) if C=250+0.75Yd interpret the meaning of the value 250

2)state the values of MPT,MPC and MPS on disposable income and MPM

3)find MPC and MPS on national income 

4)find the level of national income in the economy 

5) calculate net exports and interpret 

6) if investment rises by 15% ,what will be the change in National income