2 marksMonetary Theory and Policy
CAPE Economics Unit 2 · 2013 · Paper 2 · Question 3(a)(iii)
Distinguish between M1 and M2.
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Practise this questionOther parts of this question
- 3(a)(i)Define the term 'money'.[1 mark]
- 3(a)(ii)Briefly describe TWO types of money.[2 marks]
- 3(b)Discuss THREE tools of monetary policy that any Central Bank in the Caribbean region can use to help control inflation.[12 marks]
- 3(c)Use the Keynesian liquidity preference framework to illustrate how the contractionary policies discussed in 3 (b) will impact interest rates and the demand for…[8 marks]
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