Increase in Money Supply

Q. When the circulation of money in the market , it causes an increase in the supply of money.

1. increases
2. decreases
3. changes
4. does not change

Q. An increase in monetary supply causes a decrease in demand.

1. False
2. True

Q. There is an increase in the salaries of employees due to the festival, and due to an increase in the supply of money, the employees decided to buy gifts for family and friends.

Identify the impact of this on the economy.

1. Decreased demand
2. Increased demand
3. Increased employment
4. Decreased employment