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QUESTION 1:
What distinguishes Keynes' Liquidity preference Framework from Friedman's Modern Quantity Theory?
QUESTION 2:
Analyse the monetary policy tools that the Central Bank can use to manipulate the money supply and give the advantages and disadvantages of each.
QUESTION 3:
(a) Analyze the traditional interest rate channel of monetary transmission mechanism.
(b) Analyse the two types of monetary transmission channels proposed by the credit view.
QUESTION 4:
(a) What is the meaning of inflation.(b) Analyse the causes of inflation. (c) Describe the link between budget deficits and inflation.
Discretionary Fiscal Policy: Some government taxing and spending programs can be adjusted by government in response to changing economic circumstances. These discretionary measures
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Differentiate between real and nominal variables. In economics, the distinction among nominal and real numbers is often made. Nominal variables -- like nominal wages, interest
Principle Agent Problem [Dealing with hidden action] Assume that the employer (principle) wants its employee (agent) to work hard [You can safely assume that this maximizes th
Revenue and Profit Maximization: Whenever a good is produced, the individual firm which has produced incurs costs which are are referred to as private costs and the society in
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