11. If the velocity of money increases while the money supply remains constant, the likely short-term effect on the economy is inflation. 12. According to Keynesian theory, an increase in interest rates will decrease the speculative demand for money. Explanation: Speculative Demand for Money: This component of the demand for money arises from the desire to profit from potential changes in interest rates or asset prices. Interest Rates and Bond Prices: Bond prices and interest rates have an inverse relationship. When interest rates rise, bond prices fall,1 and vice versa. Impact of Higher Interest Rates: If interest rates rise, individuals and businesses may expect bond prices to fall in the future. This makes holding cash less attractive as they anticipate capital losses on bonds. Instead, they may prefer to hold bonds, which now offer higher returns. 13. LM Curve represents the locus of all points where money market is in equilibrium.
@drishtijakhar169410 күн бұрын
Mam, are you also gona cover satisical and mathematical portion?
@arthapoint10 күн бұрын
@@drishtijakhar1694 yes
@drishtijakhar16947 күн бұрын
@@arthapoint thank you ma'm
@FunWith_Economics7 күн бұрын
ma'am does DSE is also included under cuet clg group ?
@arthapoint7 күн бұрын
@@FunWith_Economics yes
@FunWith_Economics7 күн бұрын
@@arthapoint thank you ma'am for this series
@22ishanpednekar666 күн бұрын
How to prepare for analytical Questions for CUET PG 2025 PLEASE HELP MA'AM
@arthapoint6 күн бұрын
@@22ishanpednekar66 we are but yet sure of the pattern. Still clarity is required on whether any institute would require general paper or not in economics..
@AnjnilShivam6 күн бұрын
With no math background will not appear for this exam
@arthapoint5 күн бұрын
@@AnjnilShivam you can appear for this exam
@AnjnilShivam5 күн бұрын
@@arthapoint So sir / mam Can you give information about which college or university I target