Answer:
1. **Demand and Supply Curve with Interest Rate Fluctuations:**
- **Sketch:**
- Demand Curve: Sloping downward from left to right, representing the negative relationship between quantity demanded and price.
- Supply Curve: Sloping upward from left to right, indicating the positive relationship between quantity supplied and price.
- Intersection: Equilibrium point where quantity demanded equals quantity supplied, determining the market price and quantity.
- **Effects of Fluctuations in Interest Rate:**
- **Interest Rate Increase:**
- **Demand Side:** Decrease in consumer borrowing and spending, leading to a decrease in quantity demanded.
- **Supply Side:** Increased cost of capital, potentially reducing production, causing a decrease in quantity supplied.
- **Result:** Equilibrium price may decrease, and quantity is likely to decrease.
- **Interest Rate Decrease:**
- **Demand Side:** Increase in consumer borrowing and spending, leading to an increase in quantity demanded.
- **Supply Side:** Lower cost of capital, potentially boosting production, causing an increase in quantity supplied.
- **Result:** Equilibrium price may increase, and quantity is likely to increase.
2. **Difference between PNG Quantitative Control and BPNG Qualitative Control:**
- **PNG Quantitative Control:**
- Focuses on numerical targets and limits
