In the Keynesian system, an increase in money supply will increase the demand for goods & services by :
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2 marksMacroeconomicsMoney supply and the banking multiplierMonetary aggregates and the transmission mechanismModerateabout 1 min
UGC-NET 2024 Question 61: Money supply and the banking multiplier
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Money supply and the banking multiplier has come up 74 times in 7 exams since 2005.
What this question tests
This question is on Monetary aggregates and the transmission mechanism, part of Money supply and the banking multiplier in Macroeconomics.
How money is measured and how policy changes reach the real economy.
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