A) Based on IS-LM-bb model, explain the impact of the
following on the market and justify the shift in bb curve when
there is a/an:
i. Increase in budget deficit
ii.decrease in money supply
B) There are two (2) ways that authorities may try to
finance increased government expenditure (G), Explain
a. By printing extra money and using the money directly
to finance its expenditure
b. By borrowing — that is by selling bonds to economic
agents