• Inflation implies :

    A) rise in budget deficit

      B) rise in money supply

    C) rise in general price index

      D) rise in prices of consumer goods

    Correct Answer:
    C) rise in general price index

    Description for Correct answer

    Link for Detailed articles: Indian Economy, Inflation and Deflation

Similar Questions
1). The situation with increasing unemployment and inflation is termed as :
A). hyperinflation B). galloping inflation
C). stag inflation D). reflation
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2). Which of the following factors contributes to an inflationary trend?
A). 15% fall in production of industrial goods B). 15% increase in prices of agricultural products
C). 15% increase in supply of money in the market D). none of these
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3). Which of the following can be used for checking inflation temporarily?
A). Increase in wages B). Decrease in money supply
C). Decrease in taxes D). None of these
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4). Who among the following are not protected against inflation?
A). Salaried class B). Industrial workers
C). Pensioners D). Agricultural farmers
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5). An essential attribute of inflation is :
A). fall in production B). increase in prices
C). absence of black market D). presence of black market
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6). The best means of saving during inflation is to keep :
A). money B). Government Bonds
C). equity D). time deposits with Banks
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7). The period of high inflation and low economic growth is termed as :
A). stagnation B). take-off stage in economy
C). stagflation D). none of these3
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8). Stagflation implies a case of :
A). galloping inflation B). recession plus inflation
C). adverse balance of trade D). rising wages and employment
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9). Inflation can be contained by :
A). surplus budget B). increase in taxation
C). reduction in public expenditure D). all the above
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10). Deficit financing creates additional paper currency to fill the gap between
expenditure and revenue. This device aims at economic development but if it
fails, it generates :
A). inflation B). devaluation
C). deflation D). demonetisation
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