Q1. Deduce money demand function from the quantity theory of the money. Validate the essential suppositions.
Q2. Describe how the current rate of inflation based on the current money supply and also on expected growth of the money supply.
Q3. prepare a detail note on the seignorage and inflation tax.
Q4. Demand for the nominal balances increases with the price level. At similar time inflation causes the real demand for money to drop. Describe how these two assertions can be both accurate.
Q5. Represent a short exposition on the quantity theory of money. Recognize the suppositions related with it and interpret them.
Q6. Describe the relationship among money supply, velocity of circulation, price level and the volume of economic transaction. Describe the importance of the constancy of velocity of circulation of money.