An increase in total production (real GDP) causes the demand…

JAMB Economics 2023 45 views

An increase in total production (real GDP) causes the demand for money to ____and the interest rate to ______

  1. Increase; increase ✓
  2. Increase; decrease
  3. Decrease; decrease
  4. Decrease; increase

Explanation

This answer correctly explains the economic concept. Economics studies how people make choices about limited resources.

The other options describe different economic ideas or situations. They don’t fit what this question asks.

Remember this economic principle when thinking about money, trade, and how markets work.

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