Question

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 1

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

Answer 2

When there will be an increase in rate of interest.........