UGC NET
Ayushi Asked a Question
August 12, 2020 2:12 pmpts 30 pts
  • UGC NET
  • Economics

51. which of the following events will definitely iead to am incrase in the equi librium interest rate ? (1) a decrease in the level of output (real gdp) (2) th

51. Which of the following events will definitely Iead to am incrase in the equi librium interest rate ? (1) A decrease in the level of output (real GDP) (2) The purchase of govemment securities by the Reserve Bank of India (3) An increase in the level of output (rëáT (GEPy and mincrease in the money.supP 4) The sale of government securities by the Reserve Bank or i
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  • Nidhi taparia Best Answer
    51. The correct answer is (4). When the RBI sells government securities, it is decreasing the liquidity of money supply in the market. When supply shrinks, price of money or intere...
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