ECS 3703

University of South Africa

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ECS 3703 LATEST EXAM PACK 2021
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1

57

september 2021

2021/2022

A+
Section A You must answer ALL questions in this section 1. Explain (with the aid of two diagrams using the IS/LM/BP analysis) the effectiveness of expansionary fiscal policies as well as ease monetary policies in an open economy with flexible exchange rates and perfect capital mobility. (25) Monetary Policy is effective and Fiscal Policy ineffective. Fiscal Policy i LM 6.25 E’ 5.0 BP E IS’ IS 0 Y Yn Yf Monetary Policy i LM LM’ E F 5.0 BP Expansionary fi...
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