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Monetary Economics Sessional I in 2 2012
Question 1: (2.5+2.5+2.5=7.5)
- Describe the quantity theory of money in an expression in which it shows the proportional relationship between money and prices?
- Explain some categories of money and also its components, if there are any.
- Write the expression of money multiplier and then illustrate various factors that determine the money multiplier?
Question 2: (02+03+2.5=7.5)
- What does speculative motive of Keynes about?
- In this analysis what will happen to individual money demand if there is any change in normal rate and current rate of interest? Is there any role of critical rate, use graphical as well as mathematical expression for the explanation of your answer
- Show the effects of an increase in the quantity of money on the community’s speculative demand for money?
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