Question
a) Is now a good time to invest in gold? Why? or Why Not ? b) What is the effect of Central Banks activities on
a) Is now a good time to invest in gold? Why? or Why Not ?
b) What is the effect of Central Banks activities on the growth of developing economy like Bangladesh?
c) Recall the quantitytheory of money. Suppose the Central Bank reduces the money supply and assume the velocity of money is constant. What happens to the AD curve? What is the intuition?
D) Fisher elaborated the equation of exchange MV + MV=PT - where P is the price level and T is the physical volume per year - to incorporate the stock of money, M, and deposit currency, M, and their separate velocities, V and V. Briefly Explain this statement.
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