Zimbabwe inflation hits 231 million per cent 'Zimbabwe's inflation has rocketed to an astronomical 231 million per cent, Harare has admitted - an advance of more than 200 million per cent on the previous figure.' -

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(a) Identify five causes of rampant inflation and explain how these manifested in Zimbabwe? [5marks] (b) Why is price stability important particularly for business environment? [10 marks] (c) Discuss the three main tools of monetary policy used by the central bank to maintain price stability.