Question1. Describe the 3 techniques of computing National Income?
Question2. Why do all countries in the world compute their National Income every year, despite all the difficulties involved?
Question3. How far does National Income reflect the living standard in country?
Question4. Describe what factors might determine the level of investment in an economy.
Question5. ‘If investment increases it will cause an increase in income. If income rises it will cause an increase in investment’. Discuss whether both these statements can be true.
Question6. What are the functions of the central bank?
Question7. Make a distinction between the fixed and floating exchange rate models.
Question8. Explain the effectiveness of floating exchange rate model.
Question9. Describe the mechanics of the Mundell-Fleming model under both the fixed and flexible exchange rate regimes.