An increase in the growth rate of the nominal money supply results in ........

General Studies (CHSL) Indian Economy

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An increase in the growth rate of the nominal money supply results in

Lower rate of inflation

Higher rate of inflation

Lower interest rates

Currency appreciation

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Explanation:

Inflation can happen if the money supply grows faster than the economic output under otherwise normal economic circumstances. Inflation, or the rate at which the average price of goods or serves increases over time, can also be affected by factors beyond the money supply.