17124.PDF Q 100% DECTION D In the answer booklet provided, please answer both questions. QUESTION 16...

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17124.PDF Q 100% DECTION D In the answer booklet provided, please answer both questions. QUESTION 16 2 / 3 » TT 2 40 MANNS a) Distinguish between expansionary and contractionary monetary policy. 31 2 marks b) Explain how classical economists believed that contractionary monetary policy will affect the price level in the economy. 6 marks c) If the discount rate fell from 10% to 5%, is this a contractionary measure or an expansionary measure being used by the central bank? 1 mark d) Will the change in the discount rate from 10% to 5% cause the supply of money to increase or decrease? 1 mark 5 Ć Apr 30 1:57 + X : 0 17124.PDF Q 100% DECTION D In the answer booklet provided, please answer both questions. QUESTION 16 2 / 3 » TT 2 40 MANNS a) Distinguish between expansionary and contractionary monetary policy. 31 2 marks b) Explain how classical economists believed that contractionary monetary policy will affect the price level in the economy. 6 marks c) If the discount rate fell from 10% to 5%, is this a contractionary measure or an expansionary measure being used by the central bank? 1 mark d) Will the change in the discount rate from 10% to 5% cause the supply of money to increase or decrease? 1 mark 5 Ć Apr 30 1:57 + X : 0

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a Distinguish between expansionary and contractionary monetary policy 2 marks Expansionary Monetary ... View the full answer