Exam (elaborations)
ECS2602 ASSESSMENT 2 SEMESTER 1 2024
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- University Of South Africa (Unisa)
ECS2602 ASSESSMENT 2 SEMESTER 1 2024
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Content preview
4/6/24, 4:23 PM Assessment 2 (page 1 of 30)UNISA 2024 ECS2602-24-S1 Welcome to the module ECS2602-24-S1 Assessment 2
QUIZ
Question 1
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Marked out of 1.00
If government spending increases, what would be the impact on the interest rate in the IS-LM model?
Select one:
A. The interest rate will decrease.
B. The interest rate will increase.
C. The interest rate is unchanged.
D. The interest rate will first increase, then decrease.
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=17018656&cmid=848053 1/1
,4/6/24, 4:23 PM Assessment 2 (page 2 of 30)
UNISA 2024 ECS2602-24-S1 Welcome to the module ECS2602-24-S1 Assessment 2
QUIZ
Question 2
Answer saved
Marked out of 1.00
Which of the following are fully exogenous variables in the IS-LM model?
Select one:
A. Consumption spending, investment, government spending.
B. Level of output and income, interest rate, investment, consumption spending.
C. Demand for money, the quantity of money.
D. Government spending, taxation, marginal propensity to consume, interest rate.
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=17018656&cmid=848053&page=1 1/1
,4/6/24, 4:22 PM Assessment 2 (page 3 of 30)
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=17018656&cmid=848053&page=2 1/2
, 4/6/24, 4:22 PM Assessment 2 (page 3 of 30)
UNISA 2024 ECS2602-24-S1 Welcome to the module ECS2602-24-S1 Assessment 2
QUIZ
Question 3
Answer saved
Marked out of 1.00
This question deals with the derivation of the IS curve and is based on the following information and diagram:
We assume that investment spending is the only component of autonomous spending.
The autonomous spending at an interest rate of 10% is 4 000.
A decrease in the interest rate from 12% to 10% increases investment spending by 2 000.
The values for b and c are:
Select one:
A. b = 2 000; c = 4 000
B. b = 4 000; c = 6 000
C. b = 2 000; c = 3 000
D. b = 4 000; c = 2 000
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=17018656&cmid=848053&page=2 2/2
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