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

Correct Answer:
C) 2 only

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1). Among the causes of inflation can be listed :
1. slow growth in agricultural output
2. increasing non-development expenditure of Government
3. rapid population growth
4. rapid growth in costly imports
A). 1 and 2
B). 2 and 3
C). 1, 2, 3 and 4
D). 1 and 4 only
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2). Among the remedies of inflation we cannot include :
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B). lowering bank rate
C). reducing budgetary deficit
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even barter may be preferable is known as :
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B). hyper-inflation
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B). gap between Galloping Inflation and Runaway Inflation
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5). Which of the following is wrongly matched?
A). (a) Depression - Insufficient demand causing large scale unemployment of men and machinery over a long period of time
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B). (b) Increase in indirect taxation
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