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ECS1601-26-Y
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This question is based on the diagram below:
(a) When the interest rate increases from i0 to i1, the opportunity cost of holding money increases.
(b) When the money supply decreases from M0 to M1, this means that people would prefer to hold less money and more bonds.
(c) The above diagram illustrates the negative relationship between the quantity of money demanded for transaction purposes.❌
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South Africa uses the progressive taxation system to fund social grants to the poor. This means that those with higher incomes pay more tax, a portion of which is shared with poorer households. Which objective of macroeconomic policy is the government trying to achieve through this?
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Which of the following best describes fiscal policy?
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Wendy owns shares in Sanlam that pay her an annual dividend of R8 000 on the Johannesburg Stock Exchange (JSE). Her shares on the JSE are an example of ... assets.
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Finance, real estate and business services contributed 24% to South Africa’s GDP in the fourth quarter of 2025. Personal services contributed 16% and manufacturing, 14%. Which area of study in economics does this information focus on?
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Why is credit card spending not considered part of the money supply?
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Why are taxes considered a leakage in the circular flow?
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Which of the following best describes the linkages between the foreign sector (exports and imports) and the domestic economy?
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Which of the following is the primary mandate of the South African Reserve Bank?
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The transactions demand for money is independent of the interest rate.
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