ATTENDANCE FOR Gene boise DEPARTMENT OF ECONOMICS Date Cotober 31, 2018 Marks 60 ime Vs hours Examiners: remitle Schooman, Yolanda Nkome and Frederich stan Internal moderator: Dr Amota Wentz 150ao} 5) eomplets the diagram bio 2a demarcate sous markt sue an equim exchange ateef en eo On ZAR deposits oF 20%, abelall aes end cameras nthe freien exchange S$ and an expected retun Wi the aquirium vaoes. 19) we "Gon incense 228 mone supp, emonsteat.on the ophte ipact of is ‘sctlonon the foreign exchange market (af = W0) BY making ue ofthe graphni dcus the el IonetaryBoiey an the vai of South ats Iarkt. Refer in your answer tothe reson ot stort un (6) ‘ansonary Monetary poicy ads to owar into oe Derond or ana deposits decrease dead for Rare secsge tionship Between expansionary currency in the foreign exchange rate he exchenge rate toovershootin ne Gers of colar deposits, Due othe Seposts esd the Usk fe father ant nent 3)cuestion? {madman oy {lene reasoning behind he tlong ‘Teenovar stages tu ony depos ay sear te tor an oe exctnge sale oon 0 on tar eras doe ower buy tonsa ghey ha vanaction Ieterest rate poiy fy ore SB osha cee on ns deo TG oF return eal ciferent counties Monetary approach 2) ‘ngron motel how xchange rtas ord noney nave ‘elationship wots she ac (a)"he law etone pre (2) id onine a nether oan ‘The doward sloping return on domestic deposits 2) ‘A decrensen the domestic eu lead 10 an incre depracation) ‘ureney de the decrease in inthe domestic demand for domestic depo.its os on ——_.._} Question 3 a ® ‘ian the reasons bebithe overshot in exchange at. 0 sieey toarsvmris thst Eonciations wi asa, i . | Deprecatan a comnestcersney lenos to higher usa interest raves Face Denese currency dapracate even riser Src ig ort exchange ate overshooting in, explain wha it aspen win Dice levels inthe long un). =——_—— —_. Pike lvelincreases ramones ecm | Par mame cncleut bt the ew quiron pola mor dereaed inden | year nai pont 4) Gleeson why iain wi aot ace testo nf (maximum 35) 1} Complete he aiagram below to eaulium inthe output mates. assume snecuiioim exenange rate ofZAR3= 1 USS, {a} SeenSema ate? 0280 Whe mths powe change mt. (6, Paty tary eH "Teens port cost (onopdies Lohgopche y Diffemt ePeence basket |Federal 7aane Bayo Money supniy USmincrseees Price leven Sa ineeases eal exchange rats increases (Aneestion} Exports increases end inporisdereases ‘Yinere3505 29.00 shits 8) Thelmpact onthe equim inthe output market when So uth African government Gesde to vento the ees mst al protest and subse ai sudene Do shits rithe Bleesy ‘Government spending increases ~