Q1. Does the demand for the money based on the real interest rate or the nominal interest rate? Describe.
Q2. Define the term velocity of money. Describe the responsibility of velocity of money in the quantity theory of money.
Q3. Illustrate the meaning of money multiplier?
Q4. Illustrate the meaning of discount rate?
Q5. Illustrate the meaning of cash reserve ratio?
Q6. Illustrate how money supply is associated to the stock of high powered money.