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(Paragraph 1). (2) (ii) Define the term economic growth indicated in bold in the text (Paragraph 6). (2) (iii) Define the pegged exchange rate system

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(Paragraph 1). (2) (ii) Define the term economic growth indicated in bold in the text (Paragraph 6). (2) (iii) Define the "pegged exchange rate" system (2 ) (iv) How the exchange rate is determined in floating exchange rate system (2) (b) Using an exchange rate diagram, explain how the United Arab Emirates (UAE) could maintain a fixed value of its dirham to the US dollar if there were upward pressure on the dirham. (4) (c) Distinguish between a devaluation and a depreciation of a currency. (4) (d) Distinguish between floating and fixed exchange rate system. (4)

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