In the money market, an increase in national income will, assuming all other things remain unchanged,

Name: In the money market, an increase in national income will, assuming all other things remain unchanged,
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An increase in national income leads to an increase in consumption and investment demand, which in turn leads to an increase in demand for money to finance these activities. As a result, the interest rate will rise to equate the increased demand for money with the unchanged supply of money.

In the Money Market, an Increase in National Income Will