A decrease in investment spending will cause a/an ....
a. increase in aggregate demand
b. increase in aggregate supply
c. decrease in aggregate supply
d. decrease in aggregate demand
According to the classical cash reserve system, which of the following statements
is/are true regarding banks in South Africa?
(a) They are required to hold a minimum cash reserve of 2,5% of their deposits.
(b) The level of the repo rate influences the interest rate at which the banks provide
credit to individuals.0717513144
(c) The SARB provides cash reserves through accommodation policy to the banks
experiencing liquidity shortage.
a. (b)
b. (a)
c. (a) and (b)
d. (c)
e. (a), (b) and (c)
Which of the following is correct regarding the AD-AS model?
a. The AD-As model cannot be used to study the general price level.
b. The AD curve is upward sloping, showing that there is a positive relationship
between price and output and income.0717513144
c. When the price level rises, the central bank may decide to raise the interest rate
and this will shift the AS curve to the right.
, d. There will be a greater demand for foreign currency and lower demand for the rand
when the interest rate increases.
e. None of the above
The appropriate policy measure to combat inflation would be to …
a. increase aggregate spending.
b. decrease taxes.
c. decrease productivity.
d. increase the repo rate.
The following question is Consumer price index
based on the table
2012 2013
below:
Month
January 50.3 60.2
February 52.4 61.1
April 53.2 63.1
May 55.5 64.2
June 56.1 65.3
Assume the consumer price index increases to 72.3 in April 2014. What will be the
annual inflation rate for April 2014?
a. 9.2
b. 14.58
c. 12.72
d. 18.6
a. increase in aggregate demand
b. increase in aggregate supply
c. decrease in aggregate supply
d. decrease in aggregate demand
According to the classical cash reserve system, which of the following statements
is/are true regarding banks in South Africa?
(a) They are required to hold a minimum cash reserve of 2,5% of their deposits.
(b) The level of the repo rate influences the interest rate at which the banks provide
credit to individuals.0717513144
(c) The SARB provides cash reserves through accommodation policy to the banks
experiencing liquidity shortage.
a. (b)
b. (a)
c. (a) and (b)
d. (c)
e. (a), (b) and (c)
Which of the following is correct regarding the AD-AS model?
a. The AD-As model cannot be used to study the general price level.
b. The AD curve is upward sloping, showing that there is a positive relationship
between price and output and income.0717513144
c. When the price level rises, the central bank may decide to raise the interest rate
and this will shift the AS curve to the right.
, d. There will be a greater demand for foreign currency and lower demand for the rand
when the interest rate increases.
e. None of the above
The appropriate policy measure to combat inflation would be to …
a. increase aggregate spending.
b. decrease taxes.
c. decrease productivity.
d. increase the repo rate.
The following question is Consumer price index
based on the table
2012 2013
below:
Month
January 50.3 60.2
February 52.4 61.1
April 53.2 63.1
May 55.5 64.2
June 56.1 65.3
Assume the consumer price index increases to 72.3 in April 2014. What will be the
annual inflation rate for April 2014?
a. 9.2
b. 14.58
c. 12.72
d. 18.6
