Question : Which of the following are the reasons of deficient demand
Option 1: Decrease in government expenditure
Option 2: Fall in investment expenditure
Option 3: Both A and B
Option 4: Rise in imports
Answer (1)
15th Jan, 2024
Correct Answer: Both A and B
Solution : Following are the reasons of deficient demand-
- Decrease in prosperity to consume
- Increase in taxes
- Decrease in government expenditure
- Fall in investment expenditure
- Rise in imports
- Fall in exports
Hence, Option C is correct..
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