Pakistan Economy (Quiz NO: 3)

Q NO: 1 Discuss the followings in detail.

(a) The Monetary Approach to exchange rate determination. (7.5)
(b) Determine the equilibrium of national income under four sector economy
by expenditure approach if
Y =C + I + G+( X −M ) Where C=a+ bY ,G=G, I =I , X =X ∧M =c +dY
(2.5)
(c) Discuss the effects of exogenous disturbances on national income and the
balance of trade Graphical and theoretical under
i. An increase in investment expenditure. (5)