Economics · Macroeconomics and Money Supply
Consider the following events from an economic standpoint: 1. Increasing exports from India leads to higher inflow of foreign exchange. 2. A rise in interest rates in the USA attracts capital outflows from India. 3. Banks increasing their Marginal Cost of Funds-based Lending Rate (MCLR) makes borrowing more expensive. How many of the above scenarios is/are directly likely to decrease the domestic money supply in India?
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