The PSUs were considered by the government as the focus of the 39 trickle down effect 39 How PSUs we...........

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The PSUs were considered by the government as the focus of the 'trickle-down effect'. How PSUs were intended to bring trickle-down effect?

Generating employment for the masses
Initiating industrial development in backward regions
Raise the purchasing power of the masses

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1 and 2 only

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2 and 3 only

1, 2 and 3

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Explanation:

Trickle-down economics assumes investors, savers and company owners are the real drivers of growth. It thus believes that if investment flows to the higher echelons of the economy, the benefits slowly percolate to the poor and the lower echelons of the economy. Employment would raise purchasing power and increase demand for certain goods and services. This would push the demand for new industries which would again generate employment and tackle poverty. This creates a virtuous cycle.