Supply of money

Correct answer: B. Macroeconomics

Money supply means the quantity of money available in the economy at a particular time. Its measurement and control influence interest rates, spending, inflation, output and employment, so it is studied in macroeconomics and monetary economics. Therefore, option B is the correct answer.

Correct answer: B. Because it can affect prices and income

Money supply is studied because its expansion or contraction can influence liquidity, interest rates, aggregate demand, the general price level, income, and employment. These effects extend across the economy, making money supply a macroeconomic variable and an important concern of monetary policy.