SET 5
1. According to Fisher, inflation is always a monetary phenomenon and can only be
resolved by monetary policy and not fiscal policy. Discuss?
2. Briefly different between fishers’ theory of money demand and the Cambridge
approach?
3. Explain Keynes’ idea of demand for money?
4. What is the difference between precautionary, speculative and transactionary demand
for money?
5. State and explain the three main theories of interest rate?