the South african economy expanded on annualised 2.5percent on quarter in the three months of June 2017 ending 2 quarters of contraction and beating the market expectations of a 2.1 percent rise . It is the highest growth rate in the year with agriculture, forestry and fishing making the largest upward contribution use the AD -AS model to illustrate the effect of such growth on the general price level and the aggregate output of the South African economy
3) Malaysia is the one of the world’s most famous producer of boutique. The global demand for high quality boutique has increases and at the same time Malaysia’s central bank, Bank Negara, has increases the interest rate through contractionary monetary policy. In the foreign exchange market for Malaysian Ringgit, what happens to
a) The demand for Malaysian Ringgit?
b) The supply of Malaysian Ringgit?
c) The quantity of Malaysian Ringgit demanded?
1) How does a change in the quantity of money change the interest rate in the short run?