Exam (elaborations)

ECS2602 ASSIGNMENT 2 SEMESTER 2 2024 Which one of the following factors will NOT cause a shift of the IS curve to the left? Select one: A. An increase in taxes. B. A decrease in government spending. C. A decrease in autonomous investment. D. A decrease in

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Course
Intermediate Macroeconomics (ECS2602)

Institution
University Of South Africa (Unisa)

ECS2602 ASSIGNMENT 2 SEMESTER 2 2024 Which one of the following factors will NOT cause a shift of the IS curve to the left? Select one: A. An increase in taxes. B. A decrease in government spending. C. A decrease in autonomous investment. D. A decrease in the interest rate.

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Uploaded on September 4, 2024
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Type Exam (elaborations)
Contains Questions & answers

intermediate macroeconomics ecs2602

Institution
University of South Africa (Unisa)
Course
Intermediate Macroeconomics (ECS2602)

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, ECS2602-24-S2  Welcome to the module ECS2602-24-S2  Assessment 2

QUIZ

Question 2

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This question is based on the following comparison between the impact of an expansionary fiscal policy with a
contractionary monetary policy in the IS-LM model:

Expansionary Contractionary
fiscal policy monetary policy

The demand for goods Higher Lower

The level of output and income Higher Lower

The interest rate Unchanged Higher

Investment spending Higher Lower

Money demand and the quantity of money Higher Lower

Budget deficit Higher Unchanged

The reason for the higher demand for goods and level of output and income for an expansionary fiscal policy is that
_____________ while for a contractionary monetary policy, it is lower since the _______________.

Select one:
A. investment spending is higher; interest rate is lower

B. government spending is lower; interest rate is lower

C. government spending is higher; interest rate is higher

D. investment spending is lower; interest rate is higher

Clear my choice

,

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Exam (elaborations)

ECS2602 ASSIGNMENT 2 SEMESTER 2 2024 Which one of the following factors will NOT cause a shift of the IS curve to the left? Select one: A. An increase in taxes. B. A decrease in government spending. C. A decrease in autonomous investment. D. A decrease in

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