💥Join UPSC 2027,2028 Mentorship (June Batch) + Access XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

Supply of money remaining the same when there is an increase in demand for money, there will be

,

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

Answer:

(b)

Core Books/NCERT

Explanation

Direct application based question. If the demand increase when the supply is same, it will lead to an increase in prices or in this case rate of interest to be charged.