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General Knowledge - Indian Economy - Discussion

Discussion Forum : Indian Economy - Indian Economy (Q.No. 10)
Indian Economy
10.

Deficit financing leads to inflation in general, but it can be checked if

government expenditure leads to increase in the aggregate supply in ratio of aggregate demand
only aggregate demand is increased
all the expenditure is denoted national debt payment only
All of the above
Answer: Option
Explanation:
No answer description is available. Let's discuss.
Discussion:
24 comments Page 3 of 3.
Rivesh said:   5 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.
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