UGC NET
Ayushi Asked a Question
August 13, 2020 12:45 pmpts 30 pts
  • UGC NET
  • Economics

56. when nominal supplied money increases by 10%, then (1) gdp, investment and consumption decreases (2) gdp, investment and consumption increases (3) interest

56. When nominal supplied money increases by 10%, then (1) GDP, investment and consumption decreases (2) GDP, investment and consumption increases (3) interest rate decreases, while the change in investment and consumption is ambiguous (4) GDP and Government deficit increases
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  • Nidhi taparia Best Answer
    The correct answer is (3). When supply of money is increased, demand remaining constant, rate of interest falls. But the impact on GDP, investment and consumption is ambiguous be...
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