Supply of money remaining the same when there is an increase in demand for money, there will be

(b) Percentage of money left with Nand Kishore = 100 – (50 + 35) = 15% 15% of x = 11250 x=11250 * 100/15 =75,000

1. Demand for domestic goods and domestic demand for goods are two different concepts.  2. Demand for domestic goods is a demand for goods made by both domestic and foreign countries.  3....

Price SS1 (units) SS2 (units) SS3 (units) Market Supply = SS1 + SS2 + SS3 0 0 0 0 0 1 0 0 0 0 2 2 2 2 6 3 4 4 4 12 4 6 6 6 18 5 8 8 8 24 6 10 10 10 30 7 12 12 12 36 8 14 14 14 42

(c) 1. Purchase of government securities from the public by the Central Bank 3. Borrowing by the government from the Central Bank

(d) General Price rise may be caused by an increase in the money supply as the real value of the money reduces. The higher aggregate price level will reduce the...

Individuals demand refers to the quantity of a good, single consumer is willing to buy, at a price during a period of time while market demand refers to the quantity...

Increase in Demand Increase in Quantity Demanded  1. Increase in demand refers to increase in the purchase of a commodity at its existing Price. Increase in quantity demanded refers to increase in the...

These are three possibilities: (i) If the relative (percentage) increase in demand is greater than the increase in supply, price will rise. The price will rise because of excess demand in...

(c) as on any point of time.

Less money supply i.e., stock of money with people leaves less purchasing power in their hands. Therefore, people demand less goods and services. AD falls.