Multiple Choice Questions on The cause of inflation is ........ for General Studies (Level 1) Preparation

Inflation

Indian Economy (Easy)

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Indian Economy - Understanding the basics of Indian economic system

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    The cause of inflation is:

    increase in moneysupply

    Incorrect Answer

    fall inproduction

    Incorrect Answer

    increase  in money supply and fall inproduction

    Correct Answer

    decrease  in  money  supply  and  fall  inproduction

    Incorrect Answer
    Explanation:

    increase  in money supply and fall inproduction

    Inflation is a measure of the rate of rising prices of goods and services in an economy. Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages. A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product.


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