What are the consequences of increasing money supply in an economy that has already attained full employment level. Use appropriate diagrams to support your answer.

1. a) What are the advantages of using money in an exchange economy over thebarter system? [15marks]b) Explain the neutrality of money concept. [5marks]c) What are the consequences of increasing money supply in an economy thathas already attained full employment level. Use appropriate diagrams to support your answer. [10marks]2. a) Distinguish between simple and complex money multipliers. [8marks]b) Discuss any four instruments of money supply control. [12marks]3. a) Using appropriate diagram(s) illustrate and explain the determination ofinterest rates in a money market. [14marks]b) What do you understand by FIAT money? [6marks]

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