Economy

3 questions

• 2021 · Question 10 · Inflation

  Which one of the following is likely to be the most inflationary in its effects?

  Choose your answer

  (a)Repayment of public debt(b)Borrowing from the public to finance a budget deficit(c)Borrowing from the banks to finance a budget deficit(d)Creation of new money to finance a budget deficit

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  Source: UPSC, Civil Services (Preliminary), General Studies Paper I (opens in a new tab)

• 2021 · Question 12 · Inflation

  With reference to Indian economy, demand-pull inflation can be caused/increased by which of the following? 1. Expansionary policies 2. Fiscal stimulus 3. Inflation-indexing wages 4. Higher purchasing power 5. Rising interest rates Select the correct answer using the code given below.

  Choose your answer

  (a)1, 2 and 4 only(b)3, 4 and 5 only(c)1, 2, 3 and 5 only(d)1, 2, 3, 4 and 5

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  Source: UPSC, Civil Services (Preliminary), General Studies Paper I (opens in a new tab)

• 2020 · Question 67 · Inflation

  Consider the following statements : 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI does not capture changes in the prices of services, which CPI does. 3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates. Which of the statements given above is/are correct ?

  Choose your answer

  (a)1 and 2 only(b)2 only(c)3 only(d)1, 2 and 3

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  Source: UPSC, Civil Services (Preliminary), General Studies Paper I (opens in a new tab)