Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) General Knowledge Economy

In the Keynesian system, an increase in money supply will increase the demand for goods & services by:

1
Increasing consumption via Real Balance Effect
2
Increasing bond demand & thereby reducing the interest rate.
3
Reducing bond demand & thereby reducing the interest rate.
4
Increasing real wage & thereby increasing the transaction demand.
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