Answer should be in essay not in point form or number form

question 1

1. Illustratetheroleofmoneysupplyincausinginflation(15marks)
2. Explainthenegativeeffectsofhighinflation(15marks)
3. UsingtheAD-ASmodel,demonstratethepotentialcausesofinflation(10marks

question 2

The table below depicts the Balance oi Payments for Country A. Merchandise exports = 20 Merchandise im I orb = 13 Changes in foreign assets in country A = 1? Changes in assets abroad = 1D Servioes exporE = 15 Services import = S lnvestm ent income = 4 Income ca merits from investment = 23 [a] State Country A's trade balanoe [3 marks] Country A's trade balance is 1 This indicates that Country A's exports are worth $7" more than its imports. {b} State Country A's current aocount balance {3 marks} Country A's current account balance is S. This demonstrates that Country it's exports of products and services, investment income, and transfers are worth three times more than its imports of the same things. {c} State Country A's financial aocount balance {4 marks} [Country A's nancial account balance is 14. This indicates that Country A's nancial assets are worth $14 more than its liabilities