With respect to money supply in the economy consider the following statements:
1. Broad money is more liquid than narrow money.
2. Higher money supply indicates a decrease in the interest rates.
3. Lower money supply indicates a decrease in the interest rates.
Which of the following statements is/are correct?1
Only 1
2
Only 2
3
Both 1 and 2
4
Both 1 and 3
5
Only 3