Suppose that South Africa's net exports continue to increase. Using the IS-LM-BP model, illustrate the impact of

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Suppose that South Africa's net exports continue to increase. Using the IS-LM-BP model, illustrate the impact of the increase in exports on the BoP and explain the primary and secondary effects given your illustration.

5.2 Use the IS-LM-BP model (chain reaction) to explain the internal and external impacts of a decrease in the South African budget surplus on the levels of national income, interest rates, unemployment, the price level and the exchange rate. Assume the interest rate responsiveness of investment is low; and the interest rate responsiveness of money demand is high

5.3 Does having a fixed or flexible exchange rate matter for the SARB when considering the effectiveness of monetary policy? fully explain your answer.

Posted Date: Feb 10, 2022 08:06 AM

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Suppose that South Africa's net exports continue to increase. Using the IS-LM-BP model, illustrate the impact of

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