Economics-Inflation

High inflation levels in the economy leads to _______ in the supply of money.

Increase

Decrease

No Change

Non of the above

A government resorts to __________ to reduce inflation.

Reduction in repo rate

Increase in government expenditure

Cuts in government spending

None of the above

When the price levels of goods and services are falling continuously, this phenomenon is called

Stagflation

Deflation

Inflation

None of the above

If too much money is chasing too few goods, the resulting inflation is known as __________.

Demand-pull inflation

Stagflation

Cost-push inflation

None of the above

Inflation is measured by _______.

Consumer price index

Wholesale price index

Marshall’s index

None of the above

Inflation brings most benefits to which one of the following?

Govt. Pensioners

Creditors

Debtors

Savings bank a/c Holder

Higher inflation in INDIA would result in

More export,more import,higher AD

Less exports,more import,lower AD

Rise in Real Income

Increase in AD

When too many funds are hunting down too few goods, the probable result of inflation is recognised as __________.

Demand-pull inflation

Stagflation

Cost-push inflation

Deflation

Once the CRR is continued to increase by the RBI, this will

Add more money to the economy

There will be no change in the amount of money in the economy.

Decrease the supply of money in the economy

At first, it influences the availability, but later on, it will automatically decrease

Which one of the following observers is adopted by RBI to reduce inflation?

Increase in Repo rate

Cuts in government spending

Reduction in tax rate

Increase in government expenditure

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