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Friday, March 13, 2009
Tutorial case study questions, answers and structure to CE3‏ : Term1Week10Tut1_questions
Workbook pg 1 Qn. 4


1.How did the Colombian economy in the second half of 1990s compare with that in the first part? (2 marks)

2.A “sharp decline in economic growth has caused a rise in the government’s budget deficit.” Explain why this may be so. (2 marks)

3.What may be the impacts of the change in government investment on the Colombian economy? (4 marks)

4.Explain how a devaluation of the peso may cause a change in the macroeconomic performance of the Colombian economy. (4 marks).

5.Analyze whether the Colombian government can pursue an expansionary monetary policy using interest rates if it wishes to maintain control on the peso. (6 marks).


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