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ECS2602 ASSIGNMENT 3 SEMESTER 1 2024 SEARCHABLE DOCUMENT
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Macroeconomics Class Notes
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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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