A reduction in which of the following cases leads to an increase in the demand for goods and services?

Population growth

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Public expenditure

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Investment

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Taxes

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Solution

The correct option is D
Taxes

In democratic societies, the government reduces taxes in order to gain popularity among the voters. It leaves more money in the people’s hands which leads to inflation subject to condition that there is no corresponding increase in production.

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A reduction in which of the following cases leads to an increase in the demand for goods and services?

The correct option is D Taxes In democratic societies, the government reduces taxes in order to gain popularity among the voters. It leaves more money in the people’s hands which leads to inflation subject to condition that there is no corresponding increase in production.

The correct option is D
Taxes

In democratic societies, the government reduces taxes in order to gain popularity among the voters. It leaves more money in the people’s hands which leads to inflation subject to condition that there is no corresponding increase in production.