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The correct answer is option (b): an increase in the rate of interest. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
This question was asked in UPSC CSE Prelims 2013, GS Paper 1, as Question 85. It falls under Indian Economy > Monetary Policy & Money Supply.
This question is rated "moderate". It requires sound conceptual understanding of the topic.
UPSC has asked 27 questions from Monetary Policy & Money Supply (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.