@Xenia:
Many thanks for your reply. Your Keynesian answer structure is very helpful, but what about more straight forward questions, but also very open in their scope. For instance,
Q5. Why we demand for money? Explain each one of them. (2009)
Q.4 Explain the quantity Theory of Money with suitable examples. (2007)
These are both very simple questions, but for 20 marks I would think we need more than just the basics. For the demand for money let's say we follow the following outline
i. Define money (precise functions, uses etc- just basic)
ii. State, explain, give examples and illustrate diagrammatically the three kinds of demand for money
iii. Analyse how that leads to the liquidity preference theory and the interest rate determination.
iv. Evaluation/conclusion
I wonder if that is sufficient or do we need to go in detail about how that is then used to derive LM for IS-LM, or QTM, or refer to determinants of Money Supply or its use in monetary policy etc? I could think of a lot of relevant material to put in but I guess it would be wise to know how much analysis do these questions demand?
Your feedback will be much appreciated