Reference no: EM132872975
1. Explain the factors that limit the application of monetary tools in the economy of developing countries
2. Economies is concerned with allocation of scarce resources ' outline three resources allocation decisions in an economy
3. Discuss the importance of the concept of opportunity cost in an economy
4. Suggest four contractionary monetary policy measures that could be used to combat the level of inflation in a developing country
5. Explain the monetary views on the quantity theory of money
6. 'there have been deliberate attempts to control the rate of interest in some developing countries'
Explain five advantages of rate controls in an economy
7. Describe three ways in which a government could use fiscal policy to stimulate economic growth in a country
8. Explain three motives of holding money as an advanced by the Keynesian liquidity preference theory
9 Describe five instruments of monetary policy that could be used to control the level of money supply
10 Describe five factors that limit the effectiveness of monetary policy in developing countries and states
11 Suggest four contractionary monetary policy measures that could be used to combat a high level of inflation
12 Explain four factors that limit or could limit the effectiveness of credit creation by commercial banks
13 Argue for and against a fixed exchange rate system in an economy. Give valid explanations or illustrations where necessary
14 Explain six causes of the ever rising budget deficits in developing countries
15 Devaluation of currencies of developing countries tends to be ineffective
With reference to this statement, analyze the factors that limit the effectiveness of devaluation in developing countries
16 With reference to Keynes liquidity preference theory , distinguish between speculative motive and precautionary motive of holding wealth as money
17 Outline four factors that limit the effective implementation of monetary policy in developing countries
18 Highlight the limitation on the process of credit creation by commercial banks in a developing country
19 Summarize five major reasons why unemployment is a major policy issue in developing country
20 Suggest five policy measures that could be adopted to reduce the level of unemployment in a country