ECS4864
University of South Africa (Unisa)
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Exam (elaborations)
ECS4864 ASSIGNMENT 2 2025 (Answer Guide) – Due 6th June 2025
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--116June 20252024/2025A+
- ECS4864 ASSIGNMENT 2 2025 (Answer Guide) – Due 6th June 2025 
Title: How the Financial Sector Interacts with the Real Economy 
Introduction 
In modern economies, the financial sector plays a central role in facilitating the functioning of the real economy. Its influence extends beyond the mere transfer of funds it actively shapes consumption, production, investment, and employment through complex monetary mechanisms. The real economy consists of all activities related to the production and exc...
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Exam (elaborations)
ECS4864 ASSIGNMENT 2 2025 (Answer Guide) – Due 6th June 2025
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2.0(1)2.0116June 20252024/2025A+
- ECS4864 ASSIGNMENT 2 2025 (Answer Guide) – Due 6th June 2025 
Contents 
Title: How the Financial Sector Interacts with the Real Economy	2 
Introduction	2 
1. The Nature and Logic of the Conditions for Macroeconomic and Microeconomic Equilibrium	2 
1.1 Understanding Microeconomic Equilibrium	2 
1.2 Understanding Macroeconomic Equilibrium	3 
2. The Circular Flow of Income and the Robertson-Style Budget Equation	4 
2.1 The Nature of the Circular Flow in a Monetary Economy	4 
2.2 Monetary Injectio...
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