Explain the possible effects of an increase in interest rates.
Distinguish between the nominal rate of interest and the real rate of interest.
Distinguish between monetary and fiscal policy.
Explain the link between an increase in the money supply lead to and an increase in interest rates.
Distinguish between tight (contractionary) and loose (expansionary) monetary policy
Describe the process of quantitative easing.
Describe the role of the Central Bank.
Explain how a government can use monetary policy to expand aggregate demand.