30 points
>
Time management is very much important in IIT JAM. The eduncle test series for IIT JAM Mathematical Statistics helped me a lot in this portion. I am very thankful to the test series I bought from eduncle.
Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
- UGC NET
- Economics
42. if the reserve bank of india lowers reserve requirements, which of the fol- lowing is most likely to happen to interest rates and nominal gross domestic pro
42. If the Reserve Bank of India lowers reserve requirements, which of the fol- lowing is most likely to happen to interest rates and nominal gross domestic product ? Nominal Gross Interest Rates Domestic Product (1) Increase Decrease (2) Increase Increase (3) Decrease Decrease (4) Decrcase Increase
1 Answer(s)
Answer Now
- 0 Likes
- 1 Comments
- 0 Shares
-
![comment-profile-img]()
>
Do You Want Better RANK in Your Exam?
Start Your Preparations with Eduncle’s FREE Study Material
- Updated Syllabus, Paper Pattern & Full Exam Details
- Sample Theory of Most Important Topic
- Model Test Paper with Detailed Solutions
- Last 5 Years Question Papers & Answers
Sign Up to Download FREE Study Material Worth Rs. 500/-
Nidhi taparia Best Answer
The correct answer is (4). When RBI reduces reserve requirement, banks can give out more loans. This increases suply of money in the market, bringing down interest rates. People lend more and invest more. When investment rises, national income or GDP also rises. So answer is nominal interest rate falls and GDP rises.