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Explain the four functions of money

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Reference no: EM132767620

BUS 301 Macroeconomics - Emirates College of Technology

LO 1: Define the unemployment rate and the inflation rate and explain how to measure them

LO 2: Explain the criteria and evolution of money and its role in the economy

LO 3: Interpret the theories of business cycle and illustrate the differences between them

LO 4: Explain how international trade is financed to understand the mechanism of international borrowing and lending.

Question 1. How each of the real interest rate ad the nominal interest rate is determined and explain the relationship between these two rates.

Real interest rate

Nominal interest rate

The relationship between nominal interest rate and real interest rate

Question 2. Answer the two following questions:

A. Explain the four functions of money.

Question 3: Define rational expectations and explain the two rational expectation theories of the business cycle.

Definition of rational expectation:

Rational expectations theories.

Question 4. Explain the three accounts of the balance of payment.

Question 5. In 2020, the United States dollar exchange rate fell by 7.2% against a basket of major currencies. Explain the main causes behind such a fall.

Attachment:- Macroeconomics.rar

Reference no: EM132767620

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len2767620

1/18/2021 8:30:14 PM

Need to answer each question separately using the handouts attached only. But use another sources for solving question 5 only and write the reference.

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