UNISA 2024 ECS2602-24-S1 Welcome to the module ECS2602-24-S1 Assessment 2
QUIZ
Started on Tuesday, 2 April 2024, 3:26 PM
State Finished
Completed on Tuesday, 16 April 2024, 4:02 PM
Time taken 14 days
Marks 26.00/30.00
Grade 86.67 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Which one of the following statements is INCORRECT?
Select one:
A. An increase in investors' con�dence increases autonomous
investment. Since a positive relationship exists between
investment and the level of output and income, the IS curve will
shift to the right.
B. An increase in investors' con�dence increases autonomous
spending, and the IS curve shifts to the right.
C. An increase in This statement is the only INCORRECT
investors' statement. Investors' con�dence is one of
con�dence the autonomous spending components, and
increases therefore an increase in investor con�dence
autonomous will shift the IS curve to the right (and not a
investment, movement along the IS curve).
and therefore, an
upward movement
along the IS curve
occurs.
D. An increase in investors' con�dence increases the level of output
and income, and the IS curve shifts to the right.
Your answer is correct.
The correct answer is:
An increase in investors' con�dence increases autonomous investment,
and therefore, an upward movement along the IS curve occurs.
This question is based on the following comparison between the impact of
an expansionary �scal policy with a contractionary monetary policy in the
IS-LM model:
Money demand and the quantity of money Higher Lower
Budget de�cit Higher Unchanged
The reason for the higher quantity of money demand and the quantity of
money for an expansionary �scal policy is that the _______ while for a
contractionary monetary policy it is lower since the ________.
Select one:
A. level of output and income is lower; level of output and income is higher
B. interest rate is unchanged; interest rate is higher
C. level of output and income is higher; level of output and income is
lower
D. investment spending is higher; investment spending is lower
Your answer is correct. A positive relationship exists between the level of output
and income and the quantity demand for money and the quantity for money. In
the case of an expansionary �scal policy, the level of output and income is higher
(Y↑ → Md↑ → M↑). In the case of contractionary monetary policy, the level of
output and income is lower (Y↓ → Md↓ → M↓).
The correct answer is:
level of output and income is higher; level of output and income is lower
This question is based on the following table, which indicates potential
investment projects, expected rate of return for each project and the funding
required for each project.
Project Expected rate of return Funding required
A 15% R2 million
B 8% R3 million
C 12% R4 million
D 5% R1 million
Which one of the following statements is INCORRECT?
Select one:
A. At a market This statement is the only INCORRECT
interest rate of statement. An increase in the market interest
13%, projects A rate increases the cost of borrowing money, and
and C are �rms will �nd fewer pro�table investment
feasible, and opportunities. Only project A will be feasible at a
the level of market interest rate of 13%, and the planned
planned investment spending level is R2 million.
investment
spending is R6
million.
B. At a market interest rate of 4%, all the projects are feasible, and the level
of planned investment spending is R10 million.
C. At a market interest rate of 16%, none of the projects is pro�table
because the cost of the investment is higher than the rate of return.
D. At a market interest rate of 7%, projects A, B and C are feasible, and the
level of planned investment spending is R9 million.
Your answer is correct.
The correct answer is:
At a market interest rate of 13%, projects A and C are feasible, and the level of
planned investment spending is R6 million.
3 of 30 2024/04/30, 15
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mondesgames123. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.50. You're not tied to anything after your purchase.