Assertion A If market rate of interest falls then prices shall rise Reason R Prices rise as a r...........

Economic Affairs Money Supply and Monetary Policy

Assertion(A) If market rate of interest falls, then prices shall rise

Reason(R) Prices rise as a result of increase in demand.

Both A and R are true and R is the correct explanation of A.

Both A and R are true and R is not the correct explanation of A.

A is true R is false

A is false R is true

Interest rates and prices have an inverse relationship; so when one goes up, the other goes down. and this happens due to demand.

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