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.
Correct Answer: Fall in imports
Solution : Following are the reasons of excess demand-
Hence Option D is correct.
Option 1: Increase in government expenditure
Option 2: Increase in investment
Option 3: Fall in imports
Option 4: All of the above
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
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
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