General Knowledge - Indian Economy - Discussion
Discussion Forum : Indian Economy - Indian Economy (Q.No. 10)
10.
Deficit financing leads to inflation in general, but it can be checked if
Discussion:
25 comments Page 3 of 3.
Rivesh said:
6 years ago
Thanks all for sharing the information.
SAHIL said:
5 years ago
The correct Answer is A, other options are incorrect because if you want to counter inflation at a time with deficit financing, the best way is to have shift in Aggregate supply curve to counter the rise in inflation. Other options are incorrect and will only increase inflation.
(1)
Jyothsna said:
5 years ago
What is an aggregate demand?
Jayaram said:
5 years ago
Options A, B, C satisfying because in the question "deficit financing leads to inflation in general"mentioned which means in general inflation occurred due to deficit.
Naman Kumar said:
2 months ago
Government spending boosts aggregate supply—for example, through infrastructure, productivity, or capacity-building investments.
This helps balance the rise in demand and keeps prices stable.
So, the Correct Answer is (A).
This helps balance the rise in demand and keeps prices stable.
So, the Correct Answer is (A).
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