Which one is the reason for appearing Deficit Demand condition ........

Which one is the reason for appearing Deficit Demand condition?

Fall in the money supply in the country

Fall in investment demand as a result of rising in bank rate

Fall in disposable income and consumer demand due to increase in taxes

All the above

- Option 1: Fall in the money supply in the country

- Reduced money supply can decrease overall spending power.

- This may lead to reduced demand across the economy.

- Option 2: Fall in investment demand as a result of rising in bank rate

- Higher bank rates can make borrowing more expensive.

- This discourages investment, leading to less economic activity.

- Option 3: Fall in disposable income and consumer demand due to increase in taxes

- Higher taxes decrease the income consumers have to spend.

- This can reduce consumer demand and slow down economic growth.

- Option 4: All the above

- All the mentioned factors contribute to a condition where demand is insufficient relative to supply, resulting in a deficit demand situation.

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