ECS3703 Assignment 2 (COMPLETE ANSWERS) Semester 2 2023 (753306) - DUE 7 September 2023.

ECS3703 Assignment 2 (COMPLETE ANSWERS) Semester 2 2023 () - DUE 7 September 2023. Detailed working, solutions, memo, notes & explanations. Question 1 [25] Suppose the Sub-Saharan African region intends to adopt a common currency for its member countries as it would be economically beneficial for the participants (nations). (a) What is this arrangement called……………………….…………………… (2) (b) In your view, would the Sub-Saharan African region have any chance of benefiting from this kind of arrangement, and why?.................................(10) (c) Discuss the risks and benefits associated with the adoption of a common currency……………………….…….…….…………………….……………. (13) Question 2 [25] Nation A is a small nation that operates under the principle of free movement of capital and fixed exchange rates. The country desires to reach the full-employment level of national income with equilibrium in its balance of payments. (a) Which relevant macroeconomic policy would you advise nation A to use to achieve this and why?................................................................................. (5) (b) With the aid of a graph, explain how the nation should use the relevant policy mentioned in (a) to achieve the full-employment level of national income with equilibrium in its balance of payments………………………………………. (20)