1. State the theory of the two interest rates. Explain how the difference between money market interest rate and natural interest rate drive the demand for credit and prices. 2. The central bank...




1. State the theory of the two interest rates. Explain how the difference between money market interest rate and natural interest rate drive the demand for credit and prices.


2. The central bank decides to peg the interest rate at near-zero level. Analyze the impact of the policy on the capital markets.


3. Describe the benefits of a common currency zone.


4. Is a central bank necessary for an economy?







May 19, 2022
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