1.9 Read the following extract and answer the question that follows, (4 marks) Unrest and economic underperformance haunt the emerging world At the start of the century, developing economies were a source of unbounded optimism and fierce ambition. Today South Africa is reeling from an insurrection, Colombia has suffered violent protests and Tunisia faces a constitutional crisis. Illiberal government is in fashion. Peru has just sworn in a Marxist as its president and independent institutions are under attack in Brazil, India and Mexico. Source: https://www.economist.com/leaders/2021/07/31/unrest-and-economic-underperformance-stalk-the- emerging-world Accessed: 20/08/21 According to economic theory, the above occurrences come as a result of emerging markets failing to accomplish which of the following objectives? Price stability b ) Balance of payments stability C) Economic growth d) Full employment 1.10 Read the following extract and answer the question that follows. (4 marks) South African Rand Carried Higher by Ebbing USD as Double-edged Sword Hangs Above The Rand has lifted off two month lows to outperform many others early the new month, leading the Pound-to- Rand exchange rate to explore the land below 20.00 this week in price action that comes alongside an ebbing of the U.S. Dollar, although a double-edged sword now hangs above the South African currency. South Africa's Rand was higher against all of the most heavily traded developed and emerging market currencies on Tuesday with the exception of the Indonesian Rupiah, continuing a week-long period of outperformance. Source: https://www.poundsterlinglive.com/zar/15766-south-african-rand-carried-higher-by-ebbing-usd-as- double-edged-sword-hangs-above Accessed: 20/08/21 The performance of the rand reported above is most likely as a result of success in which of the following macroeconomic objectives? a) Price stability b) Economic growth C) Balance of payments stability d) Inflation targeting 1.11 If desired investment exceeds actual investment, then... (4 marks) a) The economy is in a recession. b) Inventories are less than the desired level. c) Inventories are accumulating beyond the desired levels. d) Cyclical unemployment exists