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Question text
Which of the following statements is/are correct about what influences South African
exports?
a) Changes in exchange rates do have an influence on South African exports.
b) Changes in economic conditions in the rest of the world.
c) Changes in the demand for exports.
e) International competitiveness does not influence exports.
a and b
a and c
a, b and e
a, b and c
a, c and e
Question text
Which of the following is correct regarding the effects of expansionary fiscal policy?
a.The size of the multiplier will increase.
b. Autonomous spending and the level of income will decrease.
c. The slope of the consumption function will decrease due to a rise in the tax rate.
d. There will be a leakage of money out of the circular flow of income, spending and
production.
Question text
If the government wishes to reduce the flow of money in the circular flow of income and
spending, it can ______.
a.increase government spending
b. increase the tax rate
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c. increase investment spending
d. decrease the tax rate
Question text
Which of the following has/have a major impact on the level of net exports (X – Z)
a) the growth rate of GDP in South Africa relative to the growth rates of GDP in other
countries
b) the price level in South Africa relative to the price levels in other countries
c) the exchange rate between the rand and other currencies.
a.c
b. a and b
c. a and c
d. b and c
e. a, b and c
Question text
Assume that country A relies more heavily on imports than country B, while other
macroeconomic conditions are the same. If there is a positive relationship between
domestic economic activity and imports, then the multiplier of country A will be_____.
a.larger than country B’s.
b. smaller than country B’s.
c. as large as country B’s.
d. uncertain.
Question text
Use the following figure to answer the question: When government spending is included
in the economy, aggregate spending is affected.
Keynesian diagram
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