b.

For each of the following situations, determine whether the money supply will increase, decrease, or remain unchanged.

(i) Depositors heard that some banks are going bankrupt. (2 marks)

(ii) The BNM lowers the required reserves ratio. (2 marks) (iii)

The BNM sells RM200 million of bonds to CIMB Bank Berhad. (2 marks)

Question 1 a) Table 2 below shows the national income accounting data for the year 2020 in Country A. Items RM (Million) Depreciation 560 Gross private domestic investment expenditures 5980 Imports 9900 Exports 3000 Federal government expenditures 7900 State and local government expenditures 1653 Personal consumption expenditure 8960 Transfer payments 300 Receipts of factor income from the rest of the world 930 Payments of factor income to the rest of the world 1890 Using expenditure approach, calculate the following values: (1) Gross domestic product (GDP) (4 marks) (2 marks) (ii) Net domestic product (NDP) (iii) (4 marks) (iv) Net national product (NNP) Real GDP (assume the price index is 115) GDP per capita assume the population is 4 million) (2 marks) (2 marks) Continued