Q: Supply of money remaining the same when there is an increase in demand for money, there will be
a) a fall in the level of prices
b) an increase in the rate of interest
c) a decrease in the rate of interest
d) an increase in the level of income and employment
Correct Answer: Option (b)
- If the demand increases when the supply is same, it will lead to an increase in prices or in this case rate of interest to be charged. Hence, option (b) is correct.
In case you still have your doubts, contact us on 9811333901.
For UPSC Prelims Resources, Click here
For Daily Updates and Study Material:
Join our Telegram Channel – Edukemy for IAS
- 1. Learn through Videos – here
- 2. Be Exam Ready by Practicing Daily MCQs – here
- 3. Daily Newsletter – Get all your Current Affairs Covered – here
- 4. Mains Answer Writing Practice – here
