Q48) correct option - (4) fewer, decreasing
Since the interest rate has decreased then demand for domestic
currency by foreign investor will decrease which also result in
decrease in price or value.
Q49)correct option - (2) increases, and the inflation rate
When AD decreases, inflation
decreases and the unemployment
rate increases. This is because leftward movement of AD
curve along AS curve which lower down the equilibrium.
Q50) correct option - (1) decreases , decreases
When fed make open market sale of government securities. Reserve
of bank decreases and due to less reserve loan making ability of