• 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

    Correct Answer:
    C) 15% increase in supply of money in the market


Similar Questions
1). 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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2). Who among the following are not protected against inflation?
A). Salaried class B). Industrial workers
C). Pensioners D). Agricultural farmers
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3). 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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4). 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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5). 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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6). 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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7). 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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8). 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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9). A steady increase in the general level of prices as a result of excessive increase
in aggregate demand as compared to aggregate supply is termed as :
A). demand-pull inflation B). cost-push inflation
C). stagflation D). structural inflation
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10). Which of the following are definite implications of a fall in inflation?
1. Prices have fallen
2. Prices are increasing more slowly than before
3. Food supply has increased
4. There is industrial stagnation
A). 1 and 3 B). 1 only
C). 2 only D). 1, 3 and 4
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