(a)[1]
(i) How did Egypt’s current account balance change between 2014 and 2016?
- How did Egypt’s current account balance change between 2014 and 2016? [1]
- Using Table 1.1, calculate the percentage inflation rate in Egypt from 2016 to 2017 that the IMF estimated. [1]
(b)[2]
Identify two Canons of Taxation satisfied by Egypt’s new VAT.
(c)[4]
Explain how a fall in the value of the Egyptian pound could bring about demand-pull inflation and cost-push inflation in Egypt.
(d)[6]
Explain how the estimated changes in unemployment in Table 1.1 might be expected to affect Egypt’s current account balance after 2016.
(e)[6]
Discuss whether the Egyptian government’s fiscal and monetary policies described in the article are likely to succeed in curing the inflation problem.