Q-3.(A)

I

deposited Rs.3 million of my money in a Habib Bank Limited ,State

Bank of Pakistan:Required rate of reserveratio(RRR):Weekly Average Demand

Liability was setas 10.0% in June 2020. You are required to calculate the change

in the money supply in the economy.If RRR decreased to 5% in August 2020, what

will happen with the same deposit of Rs.3 million.You are also required to

compare and discuss it in few lines.

Q-3.(B).

Evaluate the policy options open to a government when the Government

wants to close a deflationary gap(negative output gap)and reduce unemployment