Friedmans modern quantity theory, Microeconomics

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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.


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