TOPIC, Business Questions

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

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

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

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

5 Devaluation of currencies of developing countries tends to be ineffective

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

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

7 Outlinefour factorsthat limit the effective implementation of monetary policy in developing countries

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

9 Summarize five majorreasonswhyunemploymentis a major policy issue in developingcountry

10 Suggest fivepolicy measures that could be adopted to reduce the level of unemployment in a country

11 State five criticismsof the marginal productivity theory of wage determination

12 Enumerate four determinants for labour in an economy

13 country x has experienced a high inflation rate over the past one year.

Highlight the negative effects of the high inflation on the economy of the country x