Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

problems are based on the table below, which describes the process by which a loaf of bread is made available to a consumer as a final good.

Price (R) of a loaf of bread
Farmer sells wheat to miller 0,70
Miller sells flour to baker 1,05
Baker sells bread to grocer 1,90
Grocer sells bread to consumer 2,25

problem1) Money financing of the government deficit

a. occurs when government borrows from central bank.
b. occurs when the central bank buys securities from the government.
c. occurs when any banking institution buys securities from the government.
d. is a way of reducing the supply of money.
e. leaves the government with the ongoing obligation to pay interest.

problem2) Which of the following is likely to lead to the increase in inflation?

a. An increase in taxes
b. Monetary and credit policies that reduce private consumption
c. More efficient public activities
d. An increase in money-financed spending
e. None of the above.

problem3) If government spending is higher than present government revenue, this is called as

a. a deficit on the current account of the balance of payments.
b. the budget deficit.
c. the public debt.
d. money financing.
e. good fiscal management.

problem4) The South African income tax system is

a. regressive.
b. a flat-rate tax.
c. proportional.
d. progressive.
e. indirect.

problem5) Which of the following will be classed as the expansionary fiscal policy?

a. An increase in the money supply
b. A reduction in the number of goods exempted from VAT
c. An increase in government taxation
d. An increase in government expenditure
e. An increase in the VAT rate

problem6) Which of the following is recorded on a financial (capital) account of balance of payments?

a. A group of South Africans spends three weeks touring Europe
b. A monetary gift from Canadian citizens to their relatives in South Africa
c. A German firm pays R5 million dividends to the holders of its shares in South Africa
d. An American firm sells its shares in a South African construction firm
e. A group of German tourists visits the Kruger National Park in South Africa for two weeks

problem7) Which of the following summarises transactions involving the country’s international exchange of goods, services, current transfers and income?

a. Current account
b. Financial account
c. Balance of payments
d. Gold standard
e. Balance of trade

problem8) Which of the following will most probably contribute to deficit (or reduce the surplus) on the South African current account?

a. A depreciation of the rand
b. A Malaysian company invests in a South African oil company
c. An increase in transfers from Italian citizens to their South African relatives
d. A decline in imports
e. An increase in mine workers’ transfer of earnings to Mozambique

problem9) The foreign exchange rate is the rate at which

a. one country’s goods trade for those of another country.
b. the currency of one country trades for the goods of another country.
c. currencies of different countries are exchanged.
d. one country’s currency trades for silver provided by another country.
e. the services of one country trade for currency of another country.

problem10) Assume that euro/US dollar exchange rate changes from 1,3 euros per dollar to 1,1 euros per dollar. Then

a. the euro has depreciated against the dollar.
b. this will increase the demand for Eurozone goods by the United States.
c. this will lead to a decline in exports by the United States to the Eurozone.
d. the euro has appreciated against the dollar.
e. the dollar has appreciated against the euro.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M93035

Have any Question? 


Related Questions in Macroeconomics

A corporation produces output with a constant market price

A corporation produces output with a constant market price of $70 per unit. The marginal product of capital is 1/(2K), where K is units of capital, with each unit assumed to be worth $1. The life span of the capital is 1 ...

Market failure market failure is a situation in which a

Market Failure Market failure is a situation in which a givenmarket does not efficiently organize production or allocate goodsand services to consumers. Overcoming market failure is asignificant challenge for the governm ...

The bible prohibits usury lev 25 it is one reason the

The Bible prohibits usury (Lev. 25). It is one reason the Catholic Church forbid banking to Christians for 1,000 years. However debt and the paying of interest is very common now. Is borrowing Biblically forbidden? What ...

You have been asked to assist your organizations marketing

You have been asked to assist your organization's marketing department to better understand how consumers make economic decisions.  Write  a 1,050-word analysis that includes the following: The impact the theory of consu ...

Provide an overview of the chilean wine industry as a part

Provide an overview of the Chilean wine industry as a part of Chile's overall export market. 200 words

Question 1 explain why real gdp might be an unreliable

Question 1: Explain why real GDP might be an unreliable indicator of the standard of living. Question 2: Why does unemployment arise and what makes some unemployment unavoidable? Question 3: Consider the following statem ...

Discuss a scenario in which the use of leading indicators

Discuss a scenario in which the use of leading indicators for your industry or firm (or an industry or firm of your choosing, could be fictitious or general) might improve performance and promote better decision making. ...

Need the answer in 150 wordswhat is currency overshooting

Need the answer in 150 words. What is currency overshooting? Using an example of a permanent decrease in money supply, explain with the help of graphs, how the money market and forex market respond to the change in the s ...

In times of a struggling economic situation determine the

In times of a struggling economic situation, determine the key steps that the Federal Reserve should take to help stabilize the economy. Next, explain how your proposed steps will affect money supply, interest rates, inf ...

1 how does the financial aspect of an organization

1. How does the financial aspect of an organization influence decision making and the outcome? 2. What are the advantages and disadvantages of a firm's use of power purchasing parity? Provide an example. 3. Interview one ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen