Question : Which of the following is the reason of excess demand?
Option 1: Increase in government expenditure

Option 2: Increase in investment

Option 3: Fall in imports
Option 4: All of the above

Question

Question : Which of the following is the reason of excess demand?

Option 1: Increase in government expenditure

Option 2: Increase in investment

Option 3: Fall in imports

Option 4: All of the above

Team Careers360 · Accepted Answer

Correct Answer: All of the above

Solution : Following are the reasons of excess demand-

Rise in the prosperity to consume
Reduction in taxes
Increase in government expenditure
Increase in investment
Fall in imports
Rise in exports
Deficit financing

Hence Option D is correct.

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Question : Which of the following is the reason of excess demand?Option 1: Increase in government expenditure Option 2: Increase in investment Option 3: Fall in importsOption 4: All of the above

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Question : Which of the following is the reason of excess demand?
Option 1: Increase in government expenditure

Option 2: Increase in investment

Option 3: Fall in imports
Option 4: All of the above

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 4: All of the above.

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.

Question : ___________________ causes the general price level to fall due to lack of demand for goods and services in the economy.

Option 1: Excess demand

Option 2: Deficient demand

Option 3: Excess supply

Option 4: Deficient demand

Question : Which of the following is not a component of aggregate demand?
Option 1: Consumption expenditure

Option 2: Investment expenditure

Option 3: Government expenditure

Option 4: Savings