2 2. Answer the following questions with reference to the South African economy. 2.1 Explain the purpose of inflation targeting policy. (2) (2x2) (4) 2.2 Briefly explain the effect inflation will have on the balance of payments of South Africa [6] 3 Causes and effects of inflation (2 ) 3.1 Comment on the impact that a continued increase in the month to month CPI index will have on the consumer. (4) 3.2 Calculate the percentage change in the inflation rate between May 2021 and June 2021. Show all calculations. (2x2) (4) 3.3 Differentiate between the Monetarist and Keynesian explanations of inflation 3.4 Discuss the negative effects of inflation on investors and people (8) with a fixed income. [18] 4. How can taxes be used to combat Inflation? (8) 5. Analyse the negative impact of administered prices on the economy (8) [16]

Investment x offers to pay you $5,700 per year for 9 years, whereas investment y offers to pay you $8,300 per year for 5 years. if the discount rate is 6 percent, what is the present value of these cash flows? (do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) present value investment x $ investment y $ if the discount rate is 16 percent, what is the present value of these cash flows? (do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) present value investment x $ investment y

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?

The common stock of ncp paid $1.35 in dividends last year. dividends are expected to grow at an annual rate of 5.30 percent for an indefinite number of years. a. if ncp's current market price is $22.57 per share, what is the stock's expected rate of return? b. if your required rate of return is 7.3 percent, what is the value of the stock for you? c. should you make the investment? a. if ncp's current market price is $22.57 per share, the stock's expected rate of return is