Aggregate demand can be decreased by ........

Economics (CUET) Money and banking

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Aggregate demand can be decreased by:

Rise in Bank Rate.

Purchase of securities in Open Market.

Deficit Budget.

None of the above

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Explanation:

Option (1) is correct.
Explanation: In case of deficient demand, there is a need to liberalize credit. It can be done by reducing bank rate so that the commercial banks also reduce their lending rate, thereby increasing the availability of credit in the economy.