international finance

Q. 2. (8+7) (a) Locate and correct the following problems facing Pakistan's economy using expenditure changing and expenditure switching policies. (i). External deficit and internal unemployment (ii). External surplus and internal inflation. ( b). If the government of Pakistan does not like to change the value of the domestic currency, then how problems mentioned in (a) can be removed when there is flexible exchange rate and capital mobility is inelastic. Q. 3. (6+9) (a) As an economic advisor to the government, can you remove the problems mentioned in question 2 (a) just using government expenditure and interest rate, illustrate