The correct answer is Supply of money Explanation & Key Takeaways: • The supply of money remaining the same when there is an increase in demand for money, there will be an increase in the rate of interest. This occurs in order to attract customers and initiate deposits among them by the banks. • As we know, when the supply of onion in the market is the same but the demand for it rises, so in such a case the price of onion is increased in order to maintain stability in the market. • It will definitely develop a fall in Aggregate Demand. • Inflation and Interest rate, both have an inverse relationship. • Increased interest rates: • It will slow down economic growth and control the inflationary pressure. • It will reduce disposable income and increase the cost of borrowing. • It will bring appreciation to the exchange rate. • It will lead to more savings than spending. • May give rise to unemployment. • Decreased interest rate: • It will boost economic growth and inflation increases. • It will bring depreciation to the exchange rate. • The cost of borrowing will become cheaper. • It will promote more spending than saving. • The situation of unemployment decreases.