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Question 52 of 60 > As a result of an increase in the supply of savings: O the interest rate increases, but the demand for bo

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Answer:- Option number 3
Reason:- Increase in the supply of savings means the increase in savings. Increase in saving means decrease in the money supply in the economy. Hence, because of this interest rates will fall. And with the fall in interest rates, the people would start substituting their savings with their expenditures. Hence, the borrowings would also decrease.

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