a) Explain the concept of money supply. What are the factors responsible for the rapid increase in money supply? [5 Marks] ii] If the velocity of money is 13 and nominal income is 6,500 , calculate the money supply. [3 Marks] b) Discuss how lower nominal interest rates would increase the transactions demand for money. [2 marks] c) "The Keynesian theory emphasizes that the price level is in fact a consequence of aggregate demand or expenditure relative to aggregate supply rather than the quantity of money. " Discuss this statement. [4 Marks] d) Money demand in an economy in which no interest is paid on money is PMd=500+0.2Y1000i Suppose that P=100,Y=1000, and i=0.10. i) Find real money demand, nominal money demand, and velocity. [1.5 Marks] ii) The price levels doubles from P=100 to P=200. Find the real money demand, nominal money demand, and velocity. [1.5 Marks] iii) Determine how velocity is affected by an increase in real income, an increase in the nominal interest rate, and an increase in the price level. [3 Marks]