2016 SCORING GUIDELINES
6 points (1+1+2+1+1)
(a) 1 point:
One point is earned for stating that new loans are zero because the bank has no excess reserves (or
because the bank is already fully loaned up).
(b) 1 point:
UNIT 1: Overview of the economy
Also refer to Chapter 2. After this session the student should be able to:
identify the role players in the system and the economic circular flow.
explain the difference between microeconomics and macroeconomics.
Explain how governments can use fiscal policy to redistribute income.
Fiscal policy involves the use of government spending, taxation and borrowing to influence
the level and growth of aggregate demand, output and employment.
Income distribution is the tr
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UNIVERSITY OF THE FREE STATE
UNIVERSITEIT VAN DIE VRYSTAAT
CONTACT NUMBER/KONTAKNOMMER: 401 2545
ASSIGNMENT 1 / WERKSOPDRAG 1
Me L. Janse van Rensburg / Me