Macroeconomics

Multiple Choice Questions

Qust Nom, 1 Given the following information: The interest rate on RSA bonds: 11% The interest rate on USA bonds: 9% Which one of the following statements is correct? O A. If the expected depreciation of the rand is 4%, financial market participants will buy RSA bonds. O B. If the expected appreciation of the rand is 4%, financial market participants will buy USA bonds. O C. If the expected depreciation of the rand is 4%, financial market participants will be indifferent between RSA and USA bonds. D. If the expected depreciation of the rand is 4%, financial market participants will buy USA bonds.Study the IS-LM-PC model below and answer the question. 7-=(-1) Which one of the following statements is correct? Select one: O A. The decrease in inflation at point b leads the central bank to increase the real interest rate and there will be an upwards movement along the IS curve from point a to point b. O B. The short-run equilibrium position in the IS-LM-PC is at point Yn. O C. In the medium run, equilibrium is at point a where the output gap and the change in inflation are equal to zero. D. At point a, the output gap is negative because output is below its potential.Qus TwoM 3 Study the following diagram and answer the question. C IS IS 0 Which one of the following statements is INCORRECT? Select one: O A. At point a the demand for goods is higher than at point b. O B. At point a and point b the level of autonomous spending is the same. O C. At point a and point b goods market equilibrium exists. O D. At point c the level of autonomous spending is higher than at point a.List NOM 4 Which one of the following statements is correct regarding our labour market model? The WS curve will shift to the left because of ... Select one: O A. labour laws that provide workers with less protection against layoffs. O B. a lower mark-up. O C. a lower unemployment rate. O D. lower nominal wages.Quot NOM 5 This question is based on the following statement below: "The promotion of investment is crucial to achieving sustainable economic growth, poverty reduction and long-term development in Africa." (OECD Global Forum on International Investment, 2003. An address by Trevor A. Manual) Which one of the following statements is INCORRECT? A more positive investment climate can achieve sustainable economic growth. The implication of this within the IS-LM model means . Select one: O A. an increase in the interest rate. O B. a rightward shift of the IS curve takes place. O C. the demand for goods increases, increasing the level of output and income. O D. a rightward movement along the LM curve takes place