Q1. describe why does the demand for money differ inversely with respect to the interest rate?
Q2. prepare down the open market operations? describe how the monetary authorities utilize open market operations to affect the market rate of interest.
Q3. In an ISLM model graphically analyze the effects of each of the given on interest rates and income levels.
a) An increase in taxes.
b) An increase in the government bond issues.
c) A reduction in the government expenses.
d) An increase in export earnings.
Q4. prepare detail notes on any two:
a) CPI and GDP deflator.
b) Balanced Budget Multiplier.
c) Crowding out effect.
d) Labor market equilibrium.