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Question
If the supply of money is increased in the economy, then which of the following statements are true:
Options:
A .  It may lead to decrease in interest rates
B .  It will necessarily lead to economic growth
C .  It may lead to increase in interest rates
D .  None of the above
Answer: Option A
Answer: (a)Increase in money supply may not necessarily lead to economic growth. But when the supply of money increases, the interest rate comes down (concept of demand and supply).

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