1. The Central Bank wants to reduce the economy's money supply. Describe the various actions it might take, and explain how each action would accomplish the bank's objective. (20 marks) 2. 'It's true that unexpected inflation redistributes wealth, from creditors to debtors, for example. But what one side of the bargain loses the other side gains. So from the perspective of the society as a whole, there is no real cost.' Do you agree? Discuss. (20 marks)