ECS2602 ASSIGNMENT 1 SEMESTER 1 - 2025

ECS2602
ASSIGNMENT- 1 (ONE)

SEMESTER 1 -2025
(NOT -AI- GENERATED)




ECS2602
2025
ASSIGNMENT – 1 (ONE)
SEMESTER 1 – 2025

(NOT -AI- GENERATED)

, Learning Unit 1 (18 marks)

Question 1:
According to the video, fiscal policy is the use of government
spending and taxation to influence the economy. (2)

Question 2:
Fiscal policy is a powerful tool. The key to its power is the multiplier
effect. (1)

Question 3:
In the video, there is a reference to supply-side economists, like
Milton Friedman. (1)

Question 4:
Monetary policy is the way the central bank influences the economy
through the management of the money supply and interest rates.
(3)

Question 5:
The central bank system in the United States is called the Federal
Reserve System. (1)

Question 6:
...expansionary monetary policy in South Africa entails a(n) decrease
in the interest (repo) rate in order to increase the demand for goods
in the economy and or a(n) increase in the level of output and
income. (3)

Question 7:
Statement: D (1)

Question 8:
Statement: D (1)

Question 9:
Option A (1)