Macroeconomics Answers

Hi,

If Central banks can create money for quantitative easing and use this money yo buy bonds etc, why can't they just create money to pay off government debt?

explain how costly is inflation,and how costly is reducing inflation?

According to the Application, the reason why the problem caused by subprime loans came to light was because

WHAT IS MENT BY STEADY STATE IN THE SOLOW MODEL? ERIVE CONDITIONS FOR STEADY STATE IN AN ECONOMY. WHAT IS THE SIGNIFICANCE OF DECREASING RETURNS IN THE SOLOW MODEL?

interpreting multivariate demand

with the aid of a properly labelled diagram, explain the three main characteristics of the consumption function?

the South African government after protracted negotiations has recently allowed the tariff-free importation of some poultry into the country. 1 explain who would benefit and who would lose in the local economy as a result of the duty-free importation of chicken?

What does a positive sign of a cross-price elasticity of demand signify for the relation between the goods in question? What does a negative sign of a cross-price elasticity of demand signify for the relation between the goods in question?

4.1 The South African Government after protracted negotiations has recently allowed the tariff free
importation of some poultry into the country.
4.1.1 Explain who would benefit and who would lose in the local economy as a result of the duty free
importation of chicken. (5)
4.1.2 Local poultry farmers are not happy with this new development and are canvassing for tariffs to be
imposed on these imports. Discuss FIVE (5) arguments which the local poultry farmers can use to
support their position. (15)
4.2 Distinguish between currency appreciation and currency depreciation. (2)
4.3 Discuss any FOUR (4) factors that could lead to the appreciation of the currency of your country in terms of
the US Dollar. (8)

3.1 Consolidated government expenditure is expected to grow by 7.1 per cent over the medium term, reaching
R1.69 trillion in 2018/19. At this rate, spending growth will outpace inflation by 0.8 per cent. (Source:
www.treasury.gov.za)
3.1.1 Describe the main instruments of fiscal policy that are available to government. (5)
3.1.2 Drawing from the statement above, how can government finance increased expenditure? (5)
3.1.3 What are the possible negative effects of 3.1.2 above? (5)
3.2 With the aid of a properly labelled diagram, explain the three main characteristics of the consumption
function. (10)
3.3 With the aid of a fully labelled diagram explain the general business cycle in the South African economy. (5)