Question: Using the above articles, identify and explain four determinants of private consumption. [8 marks] (b) With reference to the term 'floating exchange rate', analyse the

Using the above articles, identify and explain four determinants of private consumption. [8 marks]

(b) With reference to the term 'floating exchange rate', analyse the respective impact of (i) a reduction in the rate of interest, (ii) poor macroeconomic prospect and (iii) weak external demand on the value of Malaysia's currency on the foreign exchange market. [8 marks]

(c) Using diagrams, describe how an ease of 'liquidity pressure in the money market' (Extract 1) is supposed to support economic recovery in Malaysia. [12 marks]

(d) How far do you think fiscal stimulus during a recession is justifiable in the face of persistent and rising budget deficit? [12 marks]

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