Question 6 of 25 2 Points If South Africa's economy enters recession, the money demand for transaction purposes in South Africa will and the demand curve for money will A decrease make a leftward shift B increase remain the same C increase make a rightward shift D cannot be determined remain the same Reset Selection Question 9 of 25 2 Points Fiscal policy refers to changes in aimed at influencing A government spending the Interest rate level B the Interest rate level and government borrowing the deficit of the government C government spending and taxes aggregate output D taxes and government spending the exchange rate Reset Selection Question 16 of 25 2 Points Gross domestic product (GDP) may be defined as A the monetary value of all goods and services (final, intermediate and non market) produced in a given year B total resource income less taxes, savings and spending on exports C the economic value of all economic resources used in the production of a year's output D the market value of all final goods and services produced in a country in a specific year Reset Selection Mark for Review What's This Question 20 of 25 2 Points Which one of the following statements regarding the assumptions of the Keynesian model is correct A In the simple Keynesian model, prices, wages, money supply and the interest rate are given meaning that their values are determined outside the model B The simple Keynesian model can be used to explain the workings of the labour market C The simple Keynesian model can be used to study inflation D The simple Keynesian model can be used to study monetary policy Reset Selection Mark for Review What's This Question 21 of 25 2 Points Which one of the following statements is correct regarding consumption and saving in the Keynesian model A If total consumption exceeds total income, this is an indication of dissaving B If the initial income is zero, then total consumption will be equal to total saving C Given that income does not decrease, a decrease in consumer spending will result in a proportional decrease in saving D If autonomous consumption increases, consumer spending will remain the same, ceteris paribus Reset Selection Mark for Review What's This Question 23 of 25 2 Points If the multiplier is 2, an R80 billion increase in government spending will A increase GDP by 160 billion B the multiplier does not have an effect on government spending C increase GDP by 40 billion D increase GDP by 80 billion Reset Selection Mark for Review What's This Question 24 of 25 2 Points If the MPC is 0,6 and gross investment increases by R3 billion, the equilibrium GDP Will A increase by R7,5 billion B Increase by R5 billion C decrease by R1,8 billion D Increase by R1,8 billion E stay the same Reset Selection

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Question 6 of 25 2 Points If South Africa's economy enters recession, the money demand for transaction purposes in South Africa will ______ and the

Question 6 of 25

2 Points

If South Africa's economy enters recession, the money demand for transaction purposes in South Africa will ______ and the demand curve for money will______.

A. decrease; make a leftward shift
B. increase; remain the same
C. increase; make a rightward shift
D. cannot be determined; remain the same

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Question 9 of 25

2 Points

Fiscal policy refers to changes in...... aimed at influencing ......

A. government spending; the Interest rate level.
B. the Interest rate level and government borrowing; the deficit of the government.
C. government spending and taxes; aggregate output.
D. taxes and government spending; the exchange rate.

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Question 16 of 25

2 Points

Gross domestic product (GDP) may be defined as ...

A. the monetary value of all goods and services (final, intermediate and non-market) produced in a given year.
B. total resource income less taxes, savings and spending on exports.
C. the economic value of all economic resources used in the production of a year's output.
D. the market value of all final goods and services produced in a country in a specific year.

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Question 20 of 25

2 Points

Which one of the following statements regarding the assumptions of the Keynesian model is correct?

A. In the simple Keynesian model, prices, wages, money supply and the interest rate are given meaning that their values are determined outside the model.
B. The simple Keynesian model can be used to explain the workings of the labour market.
C. The simple Keynesian model can be used to study inflation.
D. The simple Keynesian model can be used to study monetary policy.

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Question 21 of 25

2 Points

Which one of the following statements is correct regarding consumption and saving in the Keynesian model?

A. If total consumption exceeds total income, this is an indication of dissaving.
B. If the initial income is zero, then total consumption will be equal to total saving.
C. Given that income does not decrease, a decrease in consumer spending will result in a proportional decrease in saving.
D. If autonomous consumption increases, consumer spending will remain the same, ceteris paribus.

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Question 23 of 25

2 Points

If the multiplier is 2, an R80 billion increase in government spending will ...