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-
Hence, Option D is correct.
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
Question : Which of the following is the reason of excess demand?
Option 1: Fall in imports
Option 2: Rise in exports
Option 3: Deficit financing
Option 1: Increase in government expenditure
Option 2: Increase in investment
Option 3: Fall in imports
Option 4: All of the above
Option 1: Decrease in prosperity to consume
Option 2: Increase in taxes
Option 4: Neither A nor B
Question : Net exports will increase. Which effect of depreciation is highlighted here?
Option 1: Increase in exports
Option 2: Decrease in imports
Option 3: Increase in the national income
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