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Consider the following factors:
1) Deficit Financing
2) Black Money in an economy
3) High rate of population growth
Which of the factor given below above are responsible for the Demand-pull inflation in an economy?
  • a)
    1 and 2
  • b)
    1 and 3
  • c)
    2 and 3
  • d)
    All of these
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following factors:1) Deficit Financing2) Black Money in a...
1. Deficit financing means that when govt finance their access expenditure by outside resources like taking borrowings. So through deficit financing liquidity increased in market. People have now more money to spent, then demand increases, its leds to inflation. So here inflation caused by demand side bottle neck. So its a demand pull inflation. 2. So black money also increase cash flow and liquidity in the market so it also increase the demand.increase demands leds to inflation. So its a Demand pull inflation.3.high population = high demand. High demand leds to inflation. So its a demand pull inflation.So D is right one
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Community Answer
Consider the following factors:1) Deficit Financing2) Black Money in a...
This type of inflation is a result of strong consumer demand. When many individuals are trying to purchase the same good, the price will inevitably increase. When this happens across the entire economy for all goods, it is known as demand pull inflation.
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Consider the following factors:1) Deficit Financing2) Black Money in an economy3) High rate of population growthWhich of the factor given below above are responsible for the Demand-pull inflation in an economy?a)1 and 2b)1 and 3c)2 and 3d)All of theseCorrect answer is option 'D'. Can you explain this answer?
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Consider the following factors:1) Deficit Financing2) Black Money in an economy3) High rate of population growthWhich of the factor given below above are responsible for the Demand-pull inflation in an economy?a)1 and 2b)1 and 3c)2 and 3d)All of theseCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following factors:1) Deficit Financing2) Black Money in an economy3) High rate of population growthWhich of the factor given below above are responsible for the Demand-pull inflation in an economy?a)1 and 2b)1 and 3c)2 and 3d)All of theseCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following factors:1) Deficit Financing2) Black Money in an economy3) High rate of population growthWhich of the factor given below above are responsible for the Demand-pull inflation in an economy?a)1 and 2b)1 and 3c)2 and 3d)All of theseCorrect answer is option 'D'. Can you explain this answer?.
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