Question: Question Two a) Briefly discuss how, according to the Quantity Theory of Money, an increase in the money supply can lead to an increase in

Question Two a) Briefly discuss how, according to the Quantity Theory

Question Two a) Briefly discuss how, according to the Quantity Theory of Money, an increase in the money supply can lead to an increase in the aggregate price level. [5 marks] b) Explain the possible effects that an interest rate increase may have on economic growth and inflation. [10 marks] c) Analyse the possible effects that quantitative easing may have on pension funds. [10 marks] [Total 25 marks]

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