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QUESTION THREE Part A Solve the following system of equations by matrix inversion, where 4x1 + X2 - 5X3 = 8 -2x1 + 3x2 + X3 = 12 3x1 - X2 + 4x3 = 5 (10 marks) Part B Consider the following macroeconomic goods market model: Y = C+lo+ Xo - M C = Co + by M = Mo + my The three endogenous variables are Y, C and M. (X is exports, M is imports). lo, Xo, Co and Mo are constants and b and m are coefficients (both are between 0 and 1) (i). Write this system as a 3 x 3 matrix system Ax = d where x = (3 marks) (ii). Find the determinant (5marks) (iii). Use Cramer's Rule to find Y, C and M (7 marks) [Total Marks = 25]