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Which of the following is a reason for surplus demand?
Increase in Public Expenditure
Increase in Money Supply
Fall in Taxes
All the above
- Increase in Public Expenditure: When the government spends more, it can lead to higher demand for goods and services, pushing up demand beyond supply.
- Increase in Money Supply: More money in the economy means people have more purchasing power, again increasing demand beyond what is available.
- Fall in Taxes: Lower taxes leave consumers with more disposable income, resulting in higher spending and increased demand.
- All the above: Each of these factors can independently contribute to surplus demand by boosting economic activity and spending.
Your chosen answer is:
Option 4 - All the above
By: santosh ProfileResourcesReport error
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