If there is a lack of money supply in comparison to the supply of goods and services then the possib...........

General Studies (CGL) Indian Economy

If there is a lack of money supply in comparison to the supply of goods and services, then the possible consequence would be

_____.

This questions was previously asked in

SSC CGL 4 June 2019 Shift-3

Hyperinflation

Deflation

Devaluation

Inflation

- Option 1: Hyperinflation

- This occurs when there's an excessive supply of money compared to goods and services. Prices rise rapidly and uncontrollably.

- Option 2: Deflation

- This happens when there's less money available compared to goods and services. It leads to a drop in the general price level.

- Option 3: Devaluation

- This refers to a reduction in the value of a currency compared to others, not directly related to money supply imbalance with goods and services.

- Option 4: Inflation

- This occurs when the money supply grows faster than the supply of goods and services, leading to a general increase in prices.

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