ECS3701
EXAM PACK
, UNIVERSITY EXAMINATIONS
May/Jun 2025
ECS3701
Monetary Economics
100 Marks
Duration: 2 Hours
First Examiner: Prof TLA Leshoro
Second Examiner: Ms T Molesane
External Examiner: Ms PA Mathebula
This paper consists of 10 pages, including this cover page and the invigilator app page. There are 5
questions in this paper.
CONFIDENTIAL
Instructions:
(1) Once you have completed your answers submit them as a single document in PDF format using the
eAssessment tool on the myExams portal. It is preferable for you to type your answers (Font: Arial 12) and
then convert your document to PDF format for submission. However, if this is not possible, you may also
write your answers down and scan them into a PDF file. Please write legibly.
(2) Start with a cover page stating the module code (ECS3701) and your student number.
(3) This should be followed by your answers to the questions.
(4) Make sure that each question and sub-questions are clearly numbered.
(5) While you are not required to cite your sources, this does not mean that you can simply copy information
from any source. You need to answer the questions in your own words. Plagiarism will not be tolerated and
may result in disciplinary action if detected. Plagiarism will result in zero marks awarded.
(6) Please ensure that you submit a declaration of honesty on myUnisa.
(7) You will need your student number and password to access this platform.
(8) You need to accept the honour pledge because it is compulsory for every student otherwise you will not be able to
access the paper, let alone upload it. This information will be used to report to the Student Disciplinary
Committee should incidents of plagiarism be suspected.
(9) Please preview and verify your document before you submit to ensure that it is free of errors, it is
readable, that your PDF document is NOT encrypted to a “secured” mode and it is NOT password
protected as these files cannot be marked. Virus-infected files will also not be marked.
(10) You have 2 hours to complete this assessment.
(11) Late submissions will NOT be marked. Emailed scripts will NOT be marked.
(12) Once you have submitted on the dedicated platform, you will receive an on-screen message of successful
submission. Please keep this email safe as a proof of your submission.
(13) If you insist on not being able to upload on the submission portal, you must contact the number and email
address provided in the QA documents posted on the announcement on the module page and provide
screenshots of the error screens.
STUDENT NUMBER
, ANSWER ALL FIVE QUESTIONS
Question 1 [25 marks]
1.1 There have been debates about how the government of South Africa can combat the increasing
inflation. While some economists are calling for the SARB to print more money, others are
against it.
As a third-year economics student, advise the government of South Africa on whether to
print more money or not. Highlight 3 implications and 3 advantages of the suggestion given.
[10]
1.2 Given the global increase in inflation resulting from the Russian invasion of Ukraine, name
and explain the three tools that the South African Reserve Bank (SARB) can use to decrease
inflation. [9]
1.3 Explain the monetary transmission mechanisms. Mention the most important and most effective
monetary transmission mechanisms. [6]
QUESTION 1 (25 marks)
1.1 Should the South African Government Print More Money?
(10 marks –
The question of whether South Africa should print more money in order to
combat rising inflation is a long-standing debate in macroeconomic policy.
Proponents argue that increasing money supply can stimulate demand,
reduce unemployment, and fund government obligations. Opponents
caution that printing money without corresponding growth in real output
distorts price signals and fuels hyperinflation, leading to economic
instability. As a third-year economics student, it is essential to advise the
government based on theoretical foundations and historical evidence.
EXAM PACK
, UNIVERSITY EXAMINATIONS
May/Jun 2025
ECS3701
Monetary Economics
100 Marks
Duration: 2 Hours
First Examiner: Prof TLA Leshoro
Second Examiner: Ms T Molesane
External Examiner: Ms PA Mathebula
This paper consists of 10 pages, including this cover page and the invigilator app page. There are 5
questions in this paper.
CONFIDENTIAL
Instructions:
(1) Once you have completed your answers submit them as a single document in PDF format using the
eAssessment tool on the myExams portal. It is preferable for you to type your answers (Font: Arial 12) and
then convert your document to PDF format for submission. However, if this is not possible, you may also
write your answers down and scan them into a PDF file. Please write legibly.
(2) Start with a cover page stating the module code (ECS3701) and your student number.
(3) This should be followed by your answers to the questions.
(4) Make sure that each question and sub-questions are clearly numbered.
(5) While you are not required to cite your sources, this does not mean that you can simply copy information
from any source. You need to answer the questions in your own words. Plagiarism will not be tolerated and
may result in disciplinary action if detected. Plagiarism will result in zero marks awarded.
(6) Please ensure that you submit a declaration of honesty on myUnisa.
(7) You will need your student number and password to access this platform.
(8) You need to accept the honour pledge because it is compulsory for every student otherwise you will not be able to
access the paper, let alone upload it. This information will be used to report to the Student Disciplinary
Committee should incidents of plagiarism be suspected.
(9) Please preview and verify your document before you submit to ensure that it is free of errors, it is
readable, that your PDF document is NOT encrypted to a “secured” mode and it is NOT password
protected as these files cannot be marked. Virus-infected files will also not be marked.
(10) You have 2 hours to complete this assessment.
(11) Late submissions will NOT be marked. Emailed scripts will NOT be marked.
(12) Once you have submitted on the dedicated platform, you will receive an on-screen message of successful
submission. Please keep this email safe as a proof of your submission.
(13) If you insist on not being able to upload on the submission portal, you must contact the number and email
address provided in the QA documents posted on the announcement on the module page and provide
screenshots of the error screens.
STUDENT NUMBER
, ANSWER ALL FIVE QUESTIONS
Question 1 [25 marks]
1.1 There have been debates about how the government of South Africa can combat the increasing
inflation. While some economists are calling for the SARB to print more money, others are
against it.
As a third-year economics student, advise the government of South Africa on whether to
print more money or not. Highlight 3 implications and 3 advantages of the suggestion given.
[10]
1.2 Given the global increase in inflation resulting from the Russian invasion of Ukraine, name
and explain the three tools that the South African Reserve Bank (SARB) can use to decrease
inflation. [9]
1.3 Explain the monetary transmission mechanisms. Mention the most important and most effective
monetary transmission mechanisms. [6]
QUESTION 1 (25 marks)
1.1 Should the South African Government Print More Money?
(10 marks –
The question of whether South Africa should print more money in order to
combat rising inflation is a long-standing debate in macroeconomic policy.
Proponents argue that increasing money supply can stimulate demand,
reduce unemployment, and fund government obligations. Opponents
caution that printing money without corresponding growth in real output
distorts price signals and fuels hyperinflation, leading to economic
instability. As a third-year economics student, it is essential to advise the
government based on theoretical foundations and historical evidence.
