Wednesday, April 19, 2006
MONEY TEA
J99) Central Banks in many developed advanced economies such as US and Japn use monetary policy to influence interest rates with varying results.
(c) Explain what are the determinants of the demand for money. [10]
(d) Discuss the importance of the demand for money in the management of the economy. [15]
J98) By cutting interest rates, Fed Chairman Alan Greenspan set the stage for a slide in global borrowing costs. Easy money meant cheap financing for governments, companies and of course, consumers.
(a) Explain what is inflation and how might "easy money" cause inflation. [10]
(b) Discuss whether interest rates alone are likely to be an efficient method of controlling inflation. [15]
NB: No typo in J99, the paper andrew tan gave me writes c) and d)
okay enjoy!
your ever-affable econs rep 8)
