Q.1.1	Describe the concept of zero lower bound as it relates to interest rates. In the prescribed textbook, Blanchard states that the federal funds rate cannot be zero (2017: 27). Explain why you agree or disagree with this statement.	(5)
Q.1.2	Give two equations that can be used to represent the consumption function equation. (Hint: Name each of its components.)	(5)
Q.1.3	Distinguish between a floating (flexible) exchange rate system and a fixed exchange rate system in an open economy.	(5)