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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


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: All of the above


Solution : Following are the reasons of excess demand-

  1. Rise in the prosperity to consume
  2. Reduction in taxes
  3. Increase in government expenditure
  4. Increase in investment
  5. Fall in imports
  6. Rise in exports
  7. Deficit financing

Hence Option D is correct.

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