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ECS1601 Assignment 7 (ALTERNATIVE) 2024 - DUE 2 November 2024

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  • Economics IB (ECS1601)
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  • University Of South Africa
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  • Economics for the IB Diploma with CD-ROM

ECS1601 Assessment 7 - Alternative 2024 – DUE 2 November 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)........... Question 1 (5 marks) Maximum word count: 100 words 1.1 Suppose you live in S...

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  • 27 de octubre de 2024
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  • ecs1601 assessment 7 alternative 2024

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ECS1601
ASSIGNMENT 7 2024
UNIQUE NO.
DUE DATE: 2 NOVEMBER 2024

, ECS1601

Assessment 7 2024

Unique Number:

Due Date: 2 November 2024

Economics IB (Macroeconomics I)

Question 1

Purchasing proudly South African products supports the circular flow of income and
spending within the local economy. When households buy locally, they increase
revenue for South African firms, which can then pay wages, invest further, and
contribute taxes that fund government services. This internal spending loop fosters job
creation and economic stability. Opting for international brands redirects income abroad,
reducing local economic benefits and increasing dependency on imports. The
opportunity cost of buying international items includes lost local job opportunities,
decreased domestic firm growth, and potential trade deficits that can impact national
economic health.



Question 2

2.1 Explanation of the Money Market in Mauritius (4 marks)

In 2023, as Mauritius's GDP growth moderates to around 5.0%, economic activities are
stabilizing. In the money market, this slowdown may lead to a reduced demand for
loans and investment, as firms and households adjust spending and borrowing to reflect
steadier growth. The demand curve for money could shift leftward, represented by a
leftward arrow. With less pressure on borrowing, the interest rate may also slightly
decrease or stabilize. A diagram would show a leftward shift in the money demand
curve, with a potential decrease in interest rates, reflecting moderated economic growth.

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