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

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.

Team Careers360 · Accepted Answer

Correct Answer: Fall in imports

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: Fall in importsOption 2: Rise in exportsOption 3: Deficit financingOption 4: All of the above.

Related Questions

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 taxesOption 4: All of the above.

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Question : Net exports = ?Option 1: Exports - ImportsOption 2: Exports + ImportsOption 3: Only Exports Option 4: None of the above.

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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 : 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 is the reason of excess demand?

Option 1: Rise in the prosperity to consume

Option 2: Reduction in taxes

Option 3: Rise in imports

Option 4: Both A and B.

Question : Net exports = ?
Option 1: Exports - Imports
Option 2: Exports + Imports
Option 3: Only Exports
Option 4: None of the above.

Question : The difference between exports and imports is _______.

Option 1: Net exports

Option 2: Net imports

Option 3: Disposable income

Option 4: All of the above.