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ECS2602 ASSIGNMENT 3 SEMESTER 1 2024 SEARCHABLE DOCUMENT

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ECS2602 ASSIGNMENT 3 SEMESTER 1 2024 SEARCHABLE DOCUMENT

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  • April 13, 2024
  • 476
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
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By: sibiyanomvuko14 • 6 months ago

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By: passmatetutorials • 6 months ago

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,4/13/24, 6:35 AM Assessment 3 (page 1 of 30)




UNISA  2024  ECS2602-24-S1  Welcome to the module ECS2602-24-S1  Assessment 3

QUIZ




Question 1

Answer saved

Marked out of 1.00




Which one of the following statements is INCORRECT regarding the IS and LM relations in an open economy?


Select one:
A. An increase in the interest rate has a negative impact on the exchange rate.

B. Given the domestic interest rate and the interest parity relation, the equilibrium interest rate determines the
equilibrium exchange rate.

C. The LM relation is the same in an open and closed economy and is a horizontal line.

D. The interest parity relation shows (given i*, Ēe) the following relationship: i↑ → E↑ and i↓ → E↓.

Clear my choice




https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=17486532&cmid=848054 1/1

, 4/13/24, 6:35 AM Assessment 3 (page 2 of 30)




UNISA  2024  ECS2602-24-S1  Welcome to the module ECS2602-24-S1  Assessment 3

QUIZ




Question 2

Answer saved

Marked out of 1.00




In the IS-LM model for an open economy, when a contractionary monetary policy is applied, the _____


Select one:
A. interest rate decreases, the LM curve shifts downwards and the level of output increases in the goods market.

B. interest rate decreases, the LM curve shifts downwards and the demand for goods decreases in the goods market.

C. interest rate increases, the LM curve shifts upwards and the level of output decreases in the goods market.

D. interest rate increases, the LM curve shifts upwards and investment spending increases in the goods market.

Clear my choice




https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=17486532&cmid=848054&page=1 1/1

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