Question 2

TRUE/FALSE QUESTIONS

Consider the following list of statements. Each statement is either true or false. You must read

each statement carefully and then select the option that you believe is correct as your answer.

Write down only the question number and next to the number either "True" or "False".

Example: If you believe sub-question 2.6 is false, then write down: 2.6. False.

2.1. Savings is a leakage or withdrawal from the circular flow of income and spending.

2.2. The primary objective of the SARB is the achievement of balanced and sustainable

economic growth.

2.3. The money demand for speculative purposes will be low when the interest is low, since

the opportunity cost of money is also low.

2.4. The GDP deflator is "a measure of the economic growth level calculated as the ratio of

nominal GDP to real GDP times 100".

2.5. The unemployment rate expresses the number of unemployed people as a percentage

of the population.