) Suppose commercial banks in Botswana hold two billion pula (P2billion) in excess reserves. Assume that...

) Suppose commercial banks in Botswana hold two billion pula (P2billion) in excess

reserves. Assume that there is no cash in hand and that the required reserve ratio is

10%. What is the maximum amount of new deposits that can be created by the

banking system?

iv) Distinguish between demand-pull inflation and cost-push inflation.

v) Discuss the economic costs of unemployment

vi) Briefly discuss the functions of the bank of Botswana

vii) Distinguish between frictional unemployment and demand deficient unemployment

(5marks)

Solutions

Expert Solution

Q: Distinguish between demand-pull inflation and cost-push inflation?

Q: Distinguish between frictional unemployment and demand deficient unemployment?

Dear student/learner, According to our protocol I am obliged to solve only one question. Out of courtesy I have solved two questions. you can post the remaining questions separately. It would be our pleasure to help you solve the question.

happy learning

Rahul Sunny answered 1 year ago

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