Question:

1.Explain the factors that limit the application of monetary tools in the economy of developing countries

2.Economies is concerned with allocation of scarce resources ' outline three resources allocation decisions in an economy

3.Discuss the importance of the concept of opportunity cost in an economy

4.Suggest four contractionary monetary policy measures that could be used to combat the level of inflation in a developing country

5.Explain the monetary views on the quantity theory of money

6.'there have been deliberate attempts to control the rate of interest in some developing countries'

Explain five advantages of rate controls in an economy

7.Describe three ways in which a government could use fiscal policy to stimulate economic growth in a country

8.Explain three motives of holding money as an advanced by the Keynesian liquidity preference theory

9 Describe five instruments of monetary policy that could be used to control the level of money supply

10Describe five factors that limit the effectiveness of monetary policy in developing countries and states

11Suggest four contractionary monetary policy measures that could be used to combat a high level of inflation

12Explain four factors that limit or could limit the effectiveness of credit creation by commercial banks

13Argue for and against a fixed exchange rate system in an economy. Give valid explanations or illustrations where necessary

14Explain six causes of the ever rising budget deficits in developing countries

15Devaluation of currencies of developing countries tends to be ineffective

With reference to this statement, analyze the factors that limit the effectiveness of devaluation in developing countries

16With reference to Keynes liquidity preference theory , distinguish between speculative motive and precautionary motive of holding wealth as money

17Outline four factors that limit the effective implementation of monetary policy in developing countries

18Highlight the limitation on the process of credit creation by commercial banks in a developing country

19Summarize five major reasons why unemployment is a major policy issue in developing country

20Suggest five policy measures that could be adopted to reduce the level of unemployment in a country

A study of the career plans ofyou ng women and men sent questionnaires to all 7'22 members of the senior class of a particular college. ICline question asked which majorwithin the business program the student had chosen. Here are the data from the students who responded: _ _Im -- II II II [a] Describe the differences between the distributions of majors for women and men with percents. (Round your answers to two decimal places] Administration Finance Describe the differences between the distributions of majors for women and men in words. The biggest difference between women and men is in ---Select-- accounting administration economics nance . The field of ---Sele~::t-- accounting administration economics nance was the field most often selected by men. [b] What percent ofthe. students did not res pond to the questionnaire? The non respo rise weakens conclusio ns drawn from these data. {Round your answer to one decimal place} as Because fluctuations in the world oil price make the U.S. short-run macroeco- comic equilibrium fluctuate, someone suggests that the government should vary the tax rate on oil, lowering the tax when the world oil price rises and increasing the tax when the world oil price falls, to stabilize the oil price in the US. market. 4. How would such an action influence aggregate demand? 5. How would such an action influence aggregate supply?E. One month Question 5: An increase in real wealth in India will . Select all that apply. Choose one or more: A. increase Indian aggregate demand B. decrease Indian aggregate demand C. increase U.S. aggregate demand D. decrease U.S. aggregate demand Question 6: Choose the right answer: Net exports will increase/decrease/stay the same when the value of the dollar result, the aggregate demand curve will shift left/increase. ECON 1204-001 Principles of Macro Spring 2019 Question 7:How might a budget deficit affect the balance of trade? O A budget deficit raises interest rates, which raises exchange rates and increases the balance of trade. O A budget deficit raises interest rates, which raises exchange rates and reduces the balance of trade. O A budget deficit reduces interest rates, which raises exchange rates and reduces the balance of trade. A budget deficit reduces interest rates, which reduces exchange rates and reduces the balance of trade.How might a budget deficit affect the balance of trade? O A budget deficit raises interest rates, which raises exchange rates and increases the balance of trade. O A budget deficit raises interest rates, which raises exchange rates and reduces the balance of trade. O A budget deficit reduces interest rates, which raises exchange rates and reduces the balance of trade. A budget deficit reduces interest rates, which reduces exchange rates and reduces the balance of trade