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ECON1102-Macroeconomics 1 - T1/2025

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An open market purchase of securities by the RBA results in __________ in the ESA of the corresponding bank and __________ in the supply of money.

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If the Reserve Bank buys securities in the open market, it is likely that: 

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If consumption increases by $75 when after-tax disposable income increases by $100, the marginal propensity to consume equals:

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Use the following figure to answer the question:

Picture

While not showing in the graph, suppose that the current equilibrium GDP is 5000. How much should autonomous spending change in order to close the output gap? Note that the potential GDP is shown as Y*.

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By adopting a fiscal policy that implies a reduction in the stock of debt, the government also

encourages:

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The marginal propensity to consume is the:

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The share price of Goliath bank at the beginning of 2016 was $80. In the middle of 2016 Goliath paid a dividend (income) on each share of $10 and at the end of 2016 the share price was $90. What was the gross return on a Goliath share in 2016?

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The share price of Goliath bank at the beginning of 2016 was $80. In the middle of 2016 Goliath paid a dividend (income) on each share of $10 and at the end of 2016 the share price was $90. What was the net return on a Goliath share in 2016?

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In the short-run Keynesian model, to close a recessionary gap of $10 billion, taxes must be:

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The central bank of Wakanda has established a channel system to set the value of its monetary policy interest rate. The width of the channel is 50 basis points and the aim is to have the target value of the policy rate lie in the centre of the channel. Its current target value for the policy rate is 1%. At what interest rate will the central bank of Wakanda be willing to lend to banks who wish to borrow reserves overnight?

 

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