Q 5 (A): How does Fishers Quantity Theory of money differ from
Keynes Quantity Theory of money? Explain with diagrams.
(B): Explain with reference to Expectation Theory that how
interest rates vary across maturities.
explain each parts separately and briefly
How does Fisher’s quantity theory of money differ from the
Keynes quantity theory of money?
(Answers should be accurate, insightful, thorough, and clearly
expressed. They should also demonstrate strong command of key
ideas, theories, research findings, and policy debates)
Explain the quantity theory of money. According to the quantity
theory of money, if the price level is 120 with a money supply of
40 what will the price level be if the money supply increases to
50?
According to the quantity theory, how does the increase in the
amount of money affect the general level of prices and the value of
money? Please explain briefly for reasons.
Explain how Keynes in his General Theory of Employment,
Interest and Money, connects the what happens in the monetary
economy to the real economy to explain how a capitalist economy can
end up in a state of unemployment in equilibrium. How did this lead
him to the policy prescriptions he proposed to bring capitalist
economies out of the Great Depression? Try to be detailed
Explain how Keynes in his General Theory of Employment, Interest
and Money, connects the what happens in the monetary economy to the
real economy to explain how a capitalist economy can end up in a
state of unemployment in equilibrium. How did this lead him to the
policy prescriptions he proposed to bring capitalist economies out
of the Great Depression?