Question

YOUR QUESTION IS:

How is the rate of interest determined by the demand and supply of money What happens to the interest rate if i Nominal income increases and ii Money supply increases​

Answer 1

Answer:

In words, An increase in the supply of money by the central bank leads to a decrease in the interest rate. The decrease in the interest rate increases the demand for money so it equals the larger money supply

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Answer 2

Answer:

How is the rate of interest determined by the demand and supply of money What happens to the interest rate if i Nominal income increases and ii Money supply increases