The government provides subsidies in various sectors Which of the following are the effects of subsi...........

Economic Affairs Poverty Related Issues

The government provides subsidies in various sectors. Which of the following are the effects of subsidies?

1. It increases inflation

2. It increases fiscal deficit

3. It decreases export competitiveness

Select the correct answer using the codes given below.

1 and 2 only

2 only

2 and 3 only

1,2 and 3

subsidies are transfer payments that create demand

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