Task; Putting into practice the skills theories and knowledge learned in class.

31Suggest four contractionary monetary policy measures that could be used to combat a high level of inflation

32Explain four factors that limit or could limit the effectiveness of credit creation by commercial banks

33Argue for and against a fixed exchange rate system in an economy. Give valid explanations or illustrations where necessary

34Explain six causes of the ever rising budget deficits in developing countries

35Devaluation 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

36With reference to Keynes liquidity preference theory , distinguish between speculative motive and precautionary motive of holding wealth as money

37Outlinefour factorsthat limit the effective implementation of monetary policy in developing countries

38Highlight the limitation on the process of credit creation by commercial banks in a developing country

39Summarize five majorreasonswhyunemploymentis a major policy issue in developingcountry

40Suggest fivepolicy measures that could be adopted to reduce the level of unemployment in a country