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Explain on the impact of a drop in the discount rate

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Reference no: EM132400151

Question 1 -

(a) Elaborate on the FOUR (4) main functions of money.

(b) Elaborate on the TWO (2) main components of money based on the narrowest definition of money.

Question 2 -

(a) Explain on the impact of a drop in the discount rate on the supply of money in the market.

(b) Based on your answer above, select an economic problem where that impact would work and explain what happens.

Question 3 -

Using the aggregate demand and aggregate supply model, explain the effects of the following on price and real income in Malaysia.

(a) Consumers are worried with the country's economic progress.

(b) Firms have begun to use more high-tech machineries for production.

(c) The Malaysian government has decided to spend on a major revamp of the public transportation system.

(d) Malaysian higher education system has produced highly skilled employees.

Reference no: EM132400151

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