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Read the following report and answer the questions that follow:
Due to the Covid-19 situation, there has been a fall in the savings of the people, and they are spending the savings. This has led to the consumption to be done by the reduction of the savings. In order to control the situation, the government has announced various stimulus packages to revive the economy and providing employment through road and railway building projects. Still the desired savings or ex-ante savings that is required for the functioning of the economy has reduced. It is seen that the private consumption expenditure, private investment expenditure and ex-ante savings has reduced the aggregate demand in the economy.
The fall in the savings is due to:
  • a)
    Decrease in income.
  • b)
    Increase in consumption.
  • c)
    Increase in government expenditure.
  • d)
    Using savings for consumption.
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Read the following report and answer the questions that follow:Due to...
Due to the Covid-19 situation, income of the people has decreased. Thus, people used their savings for their consumption.
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Read the following report and answer the questions that follow:Due to the Covid-19 situation, there has been a fall in the savings of the people, and they are spending the savings. This has led to the consumption to be done by the reduction of the savings. In order to control the situation, the government has announced various stimulus packages to revive the economy and providing employment through road and railway building projects. Still the desired savings or ex-ante savings that is required for the functioning of the economy has reduced. It is seen that the private consumption expenditure, private investment expenditure and ex-ante savings has reduced the aggregate demand in the economy.The fall in the savings is due to:a)Decrease in income.b)Increase in consumption.c)Increase in government expenditure.d)Using savings for consumption.Correct answer is option 'D'. Can you explain this answer?
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Read the following report and answer the questions that follow:Due to the Covid-19 situation, there has been a fall in the savings of the people, and they are spending the savings. This has led to the consumption to be done by the reduction of the savings. In order to control the situation, the government has announced various stimulus packages to revive the economy and providing employment through road and railway building projects. Still the desired savings or ex-ante savings that is required for the functioning of the economy has reduced. It is seen that the private consumption expenditure, private investment expenditure and ex-ante savings has reduced the aggregate demand in the economy.The fall in the savings is due to:a)Decrease in income.b)Increase in consumption.c)Increase in government expenditure.d)Using savings for consumption.Correct answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following report and answer the questions that follow:Due to the Covid-19 situation, there has been a fall in the savings of the people, and they are spending the savings. This has led to the consumption to be done by the reduction of the savings. In order to control the situation, the government has announced various stimulus packages to revive the economy and providing employment through road and railway building projects. Still the desired savings or ex-ante savings that is required for the functioning of the economy has reduced. It is seen that the private consumption expenditure, private investment expenditure and ex-ante savings has reduced the aggregate demand in the economy.The fall in the savings is due to:a)Decrease in income.b)Increase in consumption.c)Increase in government expenditure.d)Using savings for consumption.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following report and answer the questions that follow:Due to the Covid-19 situation, there has been a fall in the savings of the people, and they are spending the savings. This has led to the consumption to be done by the reduction of the savings. In order to control the situation, the government has announced various stimulus packages to revive the economy and providing employment through road and railway building projects. Still the desired savings or ex-ante savings that is required for the functioning of the economy has reduced. It is seen that the private consumption expenditure, private investment expenditure and ex-ante savings has reduced the aggregate demand in the economy.The fall in the savings is due to:a)Decrease in income.b)Increase in consumption.c)Increase in government expenditure.d)Using savings for consumption.Correct answer is option 'D'. Can you explain this answer?.
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