Q.3.1 In a country with a population of 75 million people there are 19 million children under the age of 15 years, 47 million employed, 8 million unemployed and 1 million full time students. Calculate the unemployment rate. Q.3.2 Explain, with the aid of a graph, the effect of an interest rate decrease on the money market equilibrium.

Q: How does commodity money differ from fiat money? Discuss with an example of each.

A: Fiat Money refers to the currency which is a legal or declared legal tender by the government. This…

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Q: The speculative demand for money suggests that:

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Q: What are the three jobs of money?

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A: Opportunity Cost refers to the next best alternative forgone.

Q: Define the term “money”.    List and describe the four functions of money.

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Q: 2. i) Describe briefly the tools the central bank uses to control the money supply in the economy.…

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Q: Explain how each of the following developments would affect the supply of money, the demand for…

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Q: What is the difference between portfolio and transactions theories of money demand.

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Q: Explain any two components of money supply flowing in an economy?

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Q: The following graph represents the money market in a hypothetical economy. As in the United States,…

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Q: Part (a) Introductory economics textbooks frequently claim that central banks can perfectly control…

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Q: Describe the tools the central bank uses to control the money supply in the economy? Explain why the…

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Q: Explain with the aid of a graph, the impact of a cut in interest rate on the demand for money

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Q: Use the quantity equation to answer the following: 1. What is the velocity of money when the price…

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Q: 7. Economic commentators have pointed out that demand for money in a developed country is projected…

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Q: Explain the role of reverse repo rate in controlling the money supply in economy

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Q: Draw diagrams illustrating the impact on the demand for money, the supply of money and the…

A: We are using Demand and Supply theory of money to answer this question.

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Q: If real GDP is $40 billion, the price level 30, and the velocity of money is 24, what does the…

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Q: Explain, with the aid of a graph, the effect of an interest rate decrease on the money market…

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Q: Explain on the impact of a drop in the discount rate on the supply of money in the market.

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Q: 1. Explain with aid of a diagram what happens to the money supply, money demand, the value of money,…

A: Below is the diagram that shows the increase in money supply:

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Q: Complete of the following sentences (fill in the blanks): A product that serves both as money and…

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A:

Q: hy decreasing money supply will lead with the real interest rate equal with inflation rate

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Q: Using the money market theory, illustrate the effect of the following changes on the level of…

A: The market that deals in loans of a shorter duration which is for a period of a year or less…