Business, 16.08.2021 19:50, 420420blazee

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]

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2 2. Answer the following questions with reference to the South African economy. 2.1 Explain the pur...