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PART B: (30 marks) QUESTION 1 How does the macroeconomic environment affect the firm's decision-making? Explain briefly the important variables influencing business activities. (10 marks)

PART B: (30 marks)

QUESTION 1 How does the macroeconomic environment affect the firm's decision-making? Explain briefly the important variables influencing business activities. (10 marks)

QUESTION 2 What are the main components of Aggregate Demand? Which components are more volatile than others? Explain. (10 marks)

QUESTION 3 What determines the foreign exchange rate? Discuss critical factors which may have caused the recent depreciation of the Malaysian Ringgit. (10 marks)

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