According to the text, what is the definition of inflation?

A rise in the general level of prices

A fall in the general level of prices

An increase in the stock market prices

A decrease in the stock market prices

What are the two main causes of inflation mentioned in the text?

Fiscal policy and monetary policy

Production cost and government regulations

What are the effects of inflation on creditors and debtors?

Creditors benefit and debtors suffer

Creditors suffer and debtors benefit

Both creditors and debtors benefit

Both creditors and debtors suffer

What is the impact of inflation on investment?

Inflation encourages investment in the short run

Inflation discourages investment in the short run

Inflation has no impact on investment

Inflation only affects long-term investments

How does inflation affect savings?

Inflation encourages people to save more

Inflation discourages people from saving

Inflation has no impact on savings

Inflation only affects long-term savings

What is the impact of inflation on exchange rates?

Inflation leads to depreciation of the currency

Inflation leads to appreciation of the currency

Inflation has no impact on exchange rates

Inflation only affects foreign exchange rates

How does inflation affect wages?

Inflation increases the real value of wages

Inflation decreases the real value of wages

Inflation has no impact on wages

Inflation only affects nominal wages

What is the impact of the black economy on tax revenue in India?

It leads to a surplus in tax revenue

It leads to a shortage in tax revenue

It has no impact on tax revenue

It leads to an increase in tax revenue

What is the definition of parallel economy?

Economic activities that are unreported or not measured

Economic activities that are regulated by the government

Economic activities that are conducted illegally

Economic activities that are conducted outside the country

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