1)Suppose that the exchange rate between Malaysian ringgit and US dollar (MYR/US$) was 4.4114 on Thursday and 4.4316 on the following day.

i.Did the ringgit appreciate or depreciate to the US dollar and how much was the appreciation/depreciation (in percentage change terms)?

ii.Did the US dollar appreciate or depreciate to the ringgit and how much was the appreciation/depreciation (in percentage change terms)?

2)Based on the AS-AD framework, explain and demonstrate the effect of the following situations on the equilibrium income and price levels

i)The Central Bank sells government securities to the public.

ii)A tax reduction due to Covid-19 pandemic.

iii)An increase in the cost of imported goods that are used as inputs for domestically produced products.