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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


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: Both A and B


Solution : Following are the reasons of deficient demand-

  1. Decrease in prosperity to consume
  2. Increase in taxes
  3. Decrease in government expenditure
  4. Fall in investment expenditure
  5. Rise in imports
  6. Fall in exports

Hence, Option C is correct..

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