Question : Which of the following are the reasons of deficient demand?
Option 1: Rise in imports
Option 2: Fall in exports.
Option 3: Increase in taxes
Option 4: All of the above.
Correct Answer: All of the above.
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 D is correct.