Question 2
Question 3
Bird Island is a small open economy that started the year with a large trade deficit. Using the long-run model of a small open economy, which of the panels below illustrates the impact of a fall in the marginal propensity to consume on the real interest rate and saving and investment? (Note: Nx, = trade deficit initially, NX2 = trade deficit after the effects of a fall in the marginal propensity to consume have been transmitted to the economy.) =
There are 90 000 unemployed persons in YellowwoodVille. You are given the data in the table below about the length of unemployment spells: Duration of Exit Rate Spell in Months 1 0.5 2 0.3 3 0.3 4 0.3 5 0.2 1.0 The exit rate for month t gives the fraction of unemployed persons who have been unemployed t months who "escape" unemployment at the end of the month. What fraction of unemployment months can be attributed to persons who are long-term unemployed? (Note: YellowwoodVille defines long-term unemployment as spells of unemployment that last four or more months.) NAWN
Lwando owns a delicatessen, namely Foodies Paradise. Lwando has determined that he needs R5 000 cash per day for customer transactions. Lwando has a choice between going to the bank first thing on Monday morning to withdraw R25 000 - enough cash for the whole week - or going to the bank first thing every morning for R5 000 each time. Lwando puts the cost of going to the bank at R6 per trip. Assume that funds left in the bank earn precisely enough interest to keep their purchasing power unaffected by inflation. Lwando's delicatessen is open 5 days a week for 48 weeks each year. If Lwando goes to the bank every day when the inflation rate is 5%, then the daily trips to the bank would result in net and Lwando's annual shoe leather costs of inflation equal
a Bird Island is a small open economy that started the year with a large trade deficit. Using the long-run model of a small open economy, which of the panels below illustrates the impact of a fall in the marginal propensity to consume on the real interest rate and saving and investment? (Note: NX, = trade deficit initially, NX, - trade deficit after the effects of a fall in the marginal propensity to consume have been transmitted to the economy.) Oa Real interest rate, $ $2 NX ri 1) NX-trade delict initially S, I Cuina favestment I
şi şi NX trade delic . I) NX I SI Saving, Investment Real interest rate, SS NX Оe wx trade delicity ) SI
u Roar interest rater S $2 NX ܂ ܗܢ In SI I Saving, Investment
4 There are 90 000 unemployed persons in YellowwoodVille. You are given the data in the table below about the length of unemployment spells: Duration of Exit Rate Spell in Months 1 0.5 2 0.3 3 0.3 0.3 5 0.2 6 1.0 The exit rate for month t gives the fraction of unemployed persons who have been unemployed t months who "escape" unemployment at the end of the month. What fraction of unemployment months can be attributed to persons who are long-term unemployed? (Note: YellowwoodVille defines long-term unemployment as spells of unemployment that last four or more months.) ة مية مية من يخة
In 2020 Anathi and Jessica realised that they needed to borrow R1 million to complete their research into milk cartons that will indicate when milk has turned sour. They borrowed the R1 million from UDoCount Bank and repaid the loan, together with an additional R150 000 for the use of the money exactly one year later. Both the Bank and Anathi and Jessica expected the inflation rate to be 10% over the term. Which one of the following statements is correct? Select one: OB If the actual inflation rate over the term of the loan was 12%, then UDoCount Bank gained from this unexpected change of inflation. Oь. If actual inflation rate over the term of the loan was 8%, then Anathi and Jessica gained from this unexpected change of inflation. Оe UDoCount Bank would have preferred the actual inflation rate over the term of the loan to be less than 10%. Od None of the options that have been listed are correct.
Bird Island is a small open economy that started the year with a large trade deficit. Using the long-run model of a smal
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