(a) Examine the advantages of credit channel as a monetary policy option. (10 marks) (b) Discuss the reasons for credit channel to lose its popularity as a monetary policy option. (10 marks) (c) Does tight monetary policy necessarily lead to weaken economic performance? Clarify your answer. (10 marks) (d) Discuss the mechanism and implications of the policy discussed in (c) on real GDP and prices. Simulate your answer by applying the cause-effect chain diagrams i.e. money/credit market, investment demand schedule, AE and AD-AS model. (20 marks)