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QUESTION 2 Comment all of these statements: a) Restrictive Monetary Policy will help to decrease the inflation rate. Nevertheless the decrease in the inflation rate

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QUESTION 2 Comment all of these statements: a) "Restrictive Monetary Policy will help to decrease the inflation rate. Nevertheless the decrease in the inflation rate will increase the natural rate of unemployment and this is an issue that all of us have to face." b) "Encik Ariff engages in a car loan from a bank with a 15% interest rate. He expects that the inflation rate is 13%. However the actual inflation rate is 8%. This situation will benefit Encik Ariff and hurt the bank."

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