BMZ ACADEMY
BMZ Academy
CONTACT @ 061 262 1185/068 053 8213/0717513144
BMZ ACADEMY 0612621185/ 0717513144/ 068 053 8213
,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
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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
, 4/13/24, 6:35 AM Assessment 3 (page 3 of 30)
UNISA 2024 ECS2602-24-S1 Welcome to the module ECS2602-24-S1 Assessment 3
QUIZ
Question 3
Answer saved
Marked out of 1.00
The following question refers to an IS-LM model in an open economy.
Which of the following statements is correct regarding the impact of an increase in taxes in an open economy?
Select one:
A. The trade balance improves since imports are lower and exports are higher.
B. The LM curve is upward-sloping, and an appreciation of the exchange rate occurs.
C. On the financial market, the interest rate declines since the demand for money is lower.
D. The IS curve will shift to the left. In the goods market, the demand for goods decreases and the level of output and
income declines.
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=17486532&cmid=848054&page=2 1/1
BMZ Academy
CONTACT @ 061 262 1185/068 053 8213/0717513144
BMZ ACADEMY 0612621185/ 0717513144/ 068 053 8213
,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
, 4/13/24, 6:35 AM Assessment 3 (page 3 of 30)
UNISA 2024 ECS2602-24-S1 Welcome to the module ECS2602-24-S1 Assessment 3
QUIZ
Question 3
Answer saved
Marked out of 1.00
The following question refers to an IS-LM model in an open economy.
Which of the following statements is correct regarding the impact of an increase in taxes in an open economy?
Select one:
A. The trade balance improves since imports are lower and exports are higher.
B. The LM curve is upward-sloping, and an appreciation of the exchange rate occurs.
C. On the financial market, the interest rate declines since the demand for money is lower.
D. The IS curve will shift to the left. In the goods market, the demand for goods decreases and the level of output and
income declines.
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=17486532&cmid=848054&page=2 1/1
