If money supply in a country decrease:
A)Prices will rise
B)Prices will fall
C)Rate of interest falls
D)(b) and (c) of above

Name: If money supply in a country decrease: A)Prices will rise B)Prices will fall C)Rate of interest falls D)(b) and (c) of above
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

When the money supply in a country decreases, it generally leads to a decrease in prices because there is less money circulating, reducing demand for goods and services. This deflationary effect can lead to lower prices.

If Money Supply in a Country Decrease