Part 1 of 1 - 2.0 Points
Question 1 of 2
1.0 Points
A nation’s standard of living will certainly increase when...
A. real GDP rises faster than the population growth rate.
B. real GDP rises faster than the price level.
C. real GDP rises.
D. real GDP rises faster than the number of people employed.
Answer Key: A
Question 2 of 2
1.0 Points
The term nominal GDP implies that...
A. constant prices were used to calculate GDP.
B. base year prices were used to calculate GDP.
C. current prices were used to calculate GDP.
D. domestic prices were used to calculate GDP.
Answer Key: C
Part 1 of 1 - 5.0 Points
Question 1 of 5
1.0 Points
Which of the following figures shows the impact of an increase in USA interest rates on the
South African foreign exchange market?
See figure 2.8 on sheet 2.
ECS1601 Self Assessment_Sheet2.xlsx 46 KB
, A. Figure 1
B. Figure 2
C. Figure 3
D. Figure 4
Answer Key: B
Question 2 of 5
1.0 Points
An increase in the supply of dollars in the South African foreign exchange market can be caused
by...
A. more South African firms purchasing capital goods from the United States.
B. an increase in the gold price.
C. a decrease in economic activity in the United States.
D. more South African tourists visiting the United States.
Answer Key: B
Question 3 of 5
1.0 Points
Which one of the following is most likely to increase the demand for US dollars on the South
African foreign exchange market?
A. a fall in the interest rates in the United States
B. an expected decline in the value of the rand relative to the dollar
C. a recession in South Africa
D. a decrease in international tourism
Answer Key: B
Question 4 of 5
1.0 Points
If the exchange rate changes from R9,60 = $1,00 to R8,50 = $1,00, then
, A. the rand has depreciated against the dollar.
B. the rand has weakened against the dollar.
C. the rand has appreciated against the dollar.
Answer Key: C
Question 5 of 5
1.0 Points
A depreciation of the rand against the US dollar will lead to a decrease in...
A. the price of imported goods in South Africa.
B. the price of South African products sold in the USA.
C. the price of petrol in South Africa.
D. the number of tourists from the USA visiting South Africa.
Answer Key: B
Part 1 of 1 - 2.0 Points
Question 1 of 2
1.0 Points
A decrease in the rate of inflation...
A. causes the nominal interest rate to increase.
B. causes the real interest rate to decrease.
C. causes the real interest rate to increase.
D. has no effect on either the real or nominal interest rate.
Question 1 of 2
1.0 Points
A nation’s standard of living will certainly increase when...
A. real GDP rises faster than the population growth rate.
B. real GDP rises faster than the price level.
C. real GDP rises.
D. real GDP rises faster than the number of people employed.
Answer Key: A
Question 2 of 2
1.0 Points
The term nominal GDP implies that...
A. constant prices were used to calculate GDP.
B. base year prices were used to calculate GDP.
C. current prices were used to calculate GDP.
D. domestic prices were used to calculate GDP.
Answer Key: C
Part 1 of 1 - 5.0 Points
Question 1 of 5
1.0 Points
Which of the following figures shows the impact of an increase in USA interest rates on the
South African foreign exchange market?
See figure 2.8 on sheet 2.
ECS1601 Self Assessment_Sheet2.xlsx 46 KB
, A. Figure 1
B. Figure 2
C. Figure 3
D. Figure 4
Answer Key: B
Question 2 of 5
1.0 Points
An increase in the supply of dollars in the South African foreign exchange market can be caused
by...
A. more South African firms purchasing capital goods from the United States.
B. an increase in the gold price.
C. a decrease in economic activity in the United States.
D. more South African tourists visiting the United States.
Answer Key: B
Question 3 of 5
1.0 Points
Which one of the following is most likely to increase the demand for US dollars on the South
African foreign exchange market?
A. a fall in the interest rates in the United States
B. an expected decline in the value of the rand relative to the dollar
C. a recession in South Africa
D. a decrease in international tourism
Answer Key: B
Question 4 of 5
1.0 Points
If the exchange rate changes from R9,60 = $1,00 to R8,50 = $1,00, then
, A. the rand has depreciated against the dollar.
B. the rand has weakened against the dollar.
C. the rand has appreciated against the dollar.
Answer Key: C
Question 5 of 5
1.0 Points
A depreciation of the rand against the US dollar will lead to a decrease in...
A. the price of imported goods in South Africa.
B. the price of South African products sold in the USA.
C. the price of petrol in South Africa.
D. the number of tourists from the USA visiting South Africa.
Answer Key: B
Part 1 of 1 - 2.0 Points
Question 1 of 2
1.0 Points
A decrease in the rate of inflation...
A. causes the nominal interest rate to increase.
B. causes the real interest rate to decrease.
C. causes the real interest rate to increase.
D. has no effect on either the real or nominal interest rate.
