3. "The war between Russia and Ukraine negatively affected global growth - and with it, the external demand faced by the region this year - while also accentuateng inflationary pressures, volatility and financial costs. Greater risk aversion, along with more restrictive monetary policy on the part of the world's main central banks, harmed capital flows to emerging markets, including Latin America, while also fostering local currency depreciations and making it more onerous for the region's countries to obtain financing." Source: https://www.cepal.org/en/pressreleases/eclac-foresees-growth-will-decelerate-latin- america-and-caribbean-2023-projected a. Explain what is meant by monetary policy. [4 marks] b. Using aggregate demand and aggregate supply diagrams, explain how restrictive monetary policy can slow down economic growth. [6 marks] C. Describe and explain three different supply side policies (measures) governments can implement to encourage economic growth. (6 marks). d. Discuss (arguments in favour and against) to what extent supply-side policies are likely to be more effective than monetary policies in stimulating economic growth. [4 marks] 4 . "The Egyptian Pound has slid by more than 14 percent against the United States' Dollar as of Thursday 27, October, reaching an all-time low at EGP 22.8 for every USD 1 The Central Bank of Egypt (CBE) has responded by announcing a two percent hike in interest rates for the fourth quarter of 2022. This raises lending rates to 14.25 percent, and deposit rates to 13.25 percent respectively. The decision is intended to "uphold the CBE's mandate of ensuring price stability in the local market over the medium term." Source: https://egyptianstreets.com/2022/10/27/egyptian-pound-devalued-to-record-low- against-the-us-dollar/ a. Define devaluation. [2] b. Explain two advantages of a floating exchange rate. [4] c. Analyse how fiscal policy measures could reduce inflation. [6] d. Discuss whether or not a reduction in a current account deficit on the balance of payments will benefit an economy. [8]