SOALAN/QUESTION 1 (20 MARKAH/MARKS)

Jelaskan setiap kenyataan berikut dengan sokongan hujah-hujah yang bersesuaian:

Explain each of these statements supported by reasonable reasoning:

a) Kesan pelaksanaan Dasar Fiskal mengembang ke atas halaju pendapatan wang.

The effect of expansionary Fiscal Policy on income velocity of money.

b) Hubungan tingkat harga dan tingkat output dengan bekalan/penawaran wang berdasarkan teori kuantiti wang.

The relationship of price level and the level of output with the money stock/supply according to the quantity theory of money.

c) Kesan pengurangan nisbah rizab ke atas belanjawan defisit, tabungan dan halaju pusingan wang.

The effect of reducing the reserve ratio on budgets deficit, savings and velocity of money.

d) Katakan Bank Pusat berupaya untuk mensasarkan KDNK benar apabila berlaku ketidakstabilan dalam pasaran barangan atau pasaran wang. Jelaskan dalam keadaan bagaimanakah Bank Pusat sepatutnya mensasarkan penawaran wang dan kadar bunga.

Suppose that the Central Bank is able to target real GDP when there is instability in either good market or money market. Explain in what situations should Central Bank targets money supply and interest rate.