Reference no: EM132872941
End of chapter questions
1 Suggest four contractionary monetary policy measures that could be used to combat a high level of inflation
2 Explain four factors that limit or could limit the effectiveness of credit creation by commercial banks
3 Argue for and against a fixed exchange rate system in an economy. Give valid explanations or illustrations where necessary
4 Explain six causes of the ever rising budget deficits in developing countries
5 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
6 With reference to Keynes liquidity preference theory , distinguish between speculative motive and precautionary motive of holding wealth as money
7 Outline four factors that limit the effective implementation of monetary policy in developing countries
8 Highlight the limitation on the process of credit creation by commercial banks in a developing country
9 Summarize five major reasons why unemployment is a major policy issue in developing country
10 Suggest five policy measures that could be adopted to reduce the level of unemployment in a country