GyanGramSupply of money remaining the same when there is an increase in demand for money, there will be:
Read the full question, pick an option, then see whether you were right. The answer is not shown until you attempt.
Choose an option before the answer.
Supply of money remaining the same when there is an increase in demand for money, there will be:
Pick an option to check yourself. The answer stays hidden until you attempt.
• Correct Answer: B
• Fixed money supply (vertical curve) intersects with increased money demand (rightward shift), creating excess demand at the original interest rate.
• To meet higher cash demand, economic agents sell bonds; rising bond supply lowers bond prices, pushing interest rates up.
• A, C, D are wrong because with fixed supply, excess demand raises interest rates rather than changing prices or income.
Same year. Same subject. More attempts.
Keep attempting in GyanGram.
Filter by year or subject, attempt previous-year questions, and connect each miss back to a visual deck.