ECS2602

University of South Africa

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ECS2602 ASSIGNMENT 2 SEMESTER 1 2021 POSSIBLE SOLUTIONS
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22

februari 2021

2020/2021

A
1. Which of the following are fully exogenous variables in the IS-LM model? 1. Level of output, interest rate, investment, consumption spending. 2. Government spending, taxation, money supply, marginal propensity to consume. 3. Interest rate, demand for money, supply of money. 4. Consumption spending, investment, government spending. Explanation Government spending and money supply are the factors that are regarded as exogenous variables in the IS-LM model. The level of outp...
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