33.

35.
36.

4 C 80391
Section D (Essays)

Answer any two questions.
Each question carries 12 marks.

Discuss the Quantity theory of money and its restatement by Milton Friedman.
Critically examine the liquidity preference theory of interest.
Explain the goods market and money market equilibrium using the IS-LM model.
Critically examine the Hawtrey’s pure monetary theory of business cycle.
(2 x 12 = 24 marks)