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Question Two a) Briefly discuss how, according to the Quantity Theory of Money, an increase in the money supply can lead to an increase in

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Question Two a) Briefly discuss how, according to the Quantity Theory of Money, an increase in the money supply can lead to an increase in the aggregate price level. [5 marks] b) Explain the possible effects that an interest rate increase may have on economic growth and inflation. [10 marks] c) Analyse the possible effects that quantitative easing may have on pension funds. [10 marks] [Total 25 marks]

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