ECS 2602 ASSIGNMENT 2

Jason Gary Geldenhuys ECS2602 Assignment 2 Semester 1 2013 Question 1 (7 marks) Identify the exogenous and endogenous variables in the goods market model. Y = C + I + G + X – Im Y denotes gross domestic product, C is private consumption, I is investment, G is government consumption (government spending), X is exports, and Im is imports. Exogenous variables Investment, Government spending and taxes T. endogenous variables gross domestic product, private consumption, exports, and imp...

This assignment contributes 40% towards your semester mark. Please ensure that this assignment reaches the university before the due date. Answer all questions on a mark-reading sheet. 1. Which of the following are fully exogenous variables in the IS-LM model? 1. Level of output, interest rate, investment, consumption spending. 2. Government spending, taxation, money supply, marginal propensity to consume. 3. Interest rate, demand for money, supply of money. 4. Consumption spending, invest...