100% tevredenheidsgarantie Direct beschikbaar na betaling Zowel online als in PDF Je zit nergens aan vast
logo-home
ECS1601 Assignment 5 Semester 2 2024 (95%) €3,00   In winkelwagen

Tentamen (uitwerkingen)

ECS1601 Assignment 5 Semester 2 2024 (95%)

 134 keer bekeken  10 keer verkocht
  • Vak
  • Instelling

ECS1601 assignment 5 semester 2 2024 (95%) Exam (elaborations) Economics IB (Macroeconomics I) (ECS1601)

Voorbeeld 2 van de 12  pagina's

  • 19 september 2024
  • 12
  • 2024/2025
  • Tentamen (uitwerkingen)
  • Vragen en antwoorden
avatar-seller
UNISA  2024  ECS1601-24-Y  Online assessments  Assessment 5

QUIZ




Started on Thursday, 19 September 2024, 7:01 AM
State Finished
Completed on Thursday, 19 September 2024, 9:04 AM
Time taken 2 hours 3 mins
Marks 19.00/20.00
Grade 95.00 out of 100.00


Question 1
Correct

Mark 1.00 out of 1.00




When the tax rate decreases, the size of the multiplier___________. As a result, the equilibrium level of income
will_____________.


a. decreases; increase

b. increases; remain unchanged

c. decreases; decrease

d. increases; increase 




Your answer is correct.

When the tax rate is added, it reduces the consumption function, the size of the multiplier decreases, and as a result, the
equilibrium level of income also decreases. When the tax rate decreases, the disposable income increases, and the size of
the multiplier also increases. As a result, the equilibrium level of income increases.

, Question 2

Correct

Mark 1.00 out of 1.00




The value of the multiplier is necessarily increased if


a. the marginal propensity to consume increases and the marginal propensity to import falls. 
b. the marginal propensity to consume falls and the tax rate falls.
c. the marginal propensity to consume and the marginal propensity to import rise.
d. the income tax rate falls and the marginal propensity to import rise.



In the discussion of the previous question, we explain that the multiplier will increase when the marginal propensity to
consume increases, when the tax rate decreases and when the marginal propensity to save decreases.

When the marginal propensity to import increases, it means that a larger part of an increase in income is not spent on goods
produced in our economy, thus decreasing the multiplier effect of any increase in autonomous spending. Thus, the multiplier
will increase when the marginal propensity to import decreases. This relationship is illustrated by the following formula from
section 6.7: ∝ =1/(1-c(1-t)+m) + - - Where c is the marginal propensity to consume, t is the tax rate and m is the marginal
propensity to import. The signs underneath each symbol indicate its relationship with the multiplier (α). c has a positive
relationship with α (see the + sign under c).
A positive relationship means that an increase in c will increase α. Conversely t and m have a negative (or inverse)
relationship with α. This means that if the tax rate or the marginal propensity to import increase then the multiplier will
decrease in size. The marginal propensity to save also has a negative relationship with the multiplier since an increase in s
must mean a decrease in c, since c + s = 1. The sizes of the changes are not mentioned in the, therefore we can only assume
that the value of the multiplier increases when both variables mentioned in an option has a positive effect on the size of the
multiplier. An increase in the marginal propensity to consume and a decrease in the marginal propensity to import will
definitely increase the multiplier, regardless of the size of the changes in the propensities.




Question 3
Correct

Mark 1.00 out of 1.00




The introduction of the foreign sector in the Keynesian model______ the slope of the consumption function. As a result, the
multiplier becomes______.


a. increases; larger
b. reduces; smaller 
c. increases; smaller
d. reduces; larger



When the foreign sector is introduced, the slope of the consumption function is reduced further. As a result, the multiplier
becomes even smaller. Please see example in page 156 of the prescribed book.

Voordelen van het kopen van samenvattingen bij Stuvia op een rij:

Verzekerd van kwaliteit door reviews

Verzekerd van kwaliteit door reviews

Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!

Snel en makkelijk kopen

Snel en makkelijk kopen

Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.

Focus op de essentie

Focus op de essentie

Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.

Van wie koop ik deze samenvatting?

Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper TeachmeTutor. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor €3,00. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

4,6 sterren op Google & Trustpilot (+1000 reviews)

Afgelopen 30 dagen zijn er 66579 samenvattingen verkocht

Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen

Start met verkopen
€3,00  10x  verkocht
  • (0)
  Kopen