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

A government expenditure leads to increase in the aggregate supply in ratio of aggregate demand
B only aggregate demand is increased
C all the expenditure is denoted national debt payment only
D All of the above

Correct Answer: All of the above

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 and all the expenditure is denoted national debt payment only.
Bissoy MCQ
#General Knowledge #Indian Economy

Related Questions

Which of the following model of Islamic financing can be used for large fixed assets financing such as houses, transport, machinery, etc.?
A Murabaha
B Salam
C Diminishing musharakah
D All of a, b, c
Which of the following model of Islamic financing can be used for large fixed assets financing such as houses, transport, machinery etc?
A Murabaha
B Salam
C Diminishing musharakah
D All of these
Deficit financing implies
A replacing new currency with worn out currency
B public revenue in excess of public expenditure
C printing new currency notes
D public expenditure in excess of public revenue
Deficit financing means that the government borrows money from the
A RBI
B local bodies
C big businessmen
D IMF
The temperature at which tyre inflation pressure should be checked is
A 20°C
B 25°C
C 35°C
D Ambient temperature
An inflation rate includes in bond's interest rates is one which is inflation rate
A at bond issuance
B expected in future
C expected at time of maturity
D expected at deferred call
Economic conditions of the country demand that we not only cut wages and prices but also reduce inflation- raised tax rates.
A that we not only cut wages and prices but also reduce
B not only cutting wages and prices but also to reduce
C not only to cut wages and prices but also to reduce
D not only a cut in wages and prices but also reducing
Which of the following can not be checked in a switch -case statement ?
A Character
B Integer
C Float
D None of the above
The accuracy of micrometers, calipers, dial indicators can be checked by a
A Feeler gauge
B Slip gauge
C Ring gauge
D Plug gauge
Which of the following countries of organization did not participate in Bangbandhu Bridge financing?
A ADB
B World Bank
C Japan
D IDB

Next steps