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# Autonomous consumption = R 100 million Investment spending = R 300 million Government spending = R 200 million Exports = R 150 million Autonomous

Autonomous consumption = R 100 millionInvestment spending = R 300 millionGovernment spending = R 200 millionExports = R 150 millionAutonomous imports = R 100 millionMarginal propensity to consume = 2/3Tax rate = 1/10Marginal propensity to import = 1/10Yf – Full employment = R 2 150 million11. The multiplier is equal to[1] 2[2] 2½[3] 3[4] 3⅓12. The equilibrium level of income is[1] R1 300 million.[2] R1 625 million.[3] R1 950 million.[4] R2 145 million.13. The budget deficit at the equilibrium level of income is[1] R50 million.[2] R70 million.[3] R130 million.[4] R170 million.14. The full employment income level can be reached by[1] increasing government spending by R200 million.[2] increasing exports by R175 million.[3] increasing imports by R175 million.[4] increasing investment spending by R425 million.[5] increasing government spending by R525 million.Questions 15 to 20 were taken from previous exam papers and should give you a good ideaof the kind of question you can expect in Section B of the exam paper.15. In an economic model, an endogenous variable is[1] a stand-in for more complicated variables.[2]

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