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Colombia is the world’s biggest producer of roses. The global demand for roses increases and at the same time, the central bank in Colombia increases the interest rate. In the foreign exchange market for Colombian pesos, what happens to?

a. The demand for pesos?

b. The supply of pesos?

c. The exchange rate of the peso against the U.S. dollar?


Q2 i) Suppose that four persons working in a factory are given the job of stamping expiry  date on the packet of buns. Person A, who stamps 20% of packets, fails to stamp the expiry date once in every 200 packets. Person B who stamps 60% of packets, fails to  stamp the expiry date once in every 100 packets. Person C who stamps 15% of packets,  fails to stamp the expiry date once in every 90 packets and Person D who stamps 5% of 

packets, fails to stamp the expiry date once in every 200 packets. If a buyer complains  that her packet of buns does not show the expiry date, what is the probability that,

a) It was Person A who failed to stamp?

b) It was stamped by Person B or C?

c) What is the probability that a packet bought shows an expiry date and it was  not stamped by B? 


What characteristics do the “industrialized” economies of the G-8 tend to share with one another? Why do economists think that private property laws lead to economic growth?
Assume the Malaysian Ringgit, MYR exchange rate decreased from ฿7.48 Thai Baht in November 2019 to ฿7.00 Thai Baht in November 2020, and has experience an increase from New Taiwan Dollar, NT$6.50 in November 2019 to NT$6.98 in November 2020.

a) What was the value of the New Taiwan Dollar, NT$ in terms of Malaysian Ringgit, MYR in November 2019 and in November 2020? Did the NT$ appreciate or depreciate against the MYR over the year from November 2019 to November 2020?

b) What was the value of the Thai Baht in terms of Malaysian Ringgit, MYR in November 2019 and in November 2020? Did the Thai Baht appreciate or depreciate against the MYR over the year from November 2019 to November 2020?
Colombia is the world’s biggest producer of roses. The global demand for roses increases and at the
same time, the central bank in Colombia increases the interest rate. In the foreign exchange market
for Colombian pesos, what happens to?
a. The demand for pesos?
b. The supply of pesos?
c. The exchange rate of the peso against the U.S. dollar?
1. Within the IS-LM curve model, What would be the effect of an autonomous increase in saving that was matched by a drop in consumption-that is ,a fall in a in the consumption function?. C=a + b(Y-T). Which curve would shift? How would income and the interest rate be affected?

Sources of unemployment


Colombia is the world’s biggest producer of roses. The global demand for roses increases and at the
same time, the central bank in Colombia increases the interest rate. In the foreign exchange market
for Colombian pesos, what happens to?
a. The demand for pesos?
b. The supply of pesos?
c. The exchange rate of the peso against the U.S. dollar?
Colombia is the world’s biggest producer of roses. The global demand for roses increases and at the
same time, the central bank in Colombia increases the interest rate. In the foreign exchange market
for Colombian pesos, what happens to?
a. The demand for pesos?
b. The supply of pesos?
c. The exchange rate of the peso against the U.S. dollar?
How bank will create money if the initial currency is 2000 taka and reserve-deposit ratio is .3
(30%). Explain the process and use the formula money supply= money multiplier* monetary base
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