The policy of price support has ___________ inflation in India.

increased

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decreased

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no relation to

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Nnne of the above

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Solution

The correct option is A increased
The policy of price support refers to the minimum legal price which a seller may expect and charge from the sale of its goods and service which is usually placed above equilibrium price in the market for all goods and services. Therefore, the policy of price support increases inflation in India due to price level higher than the equilibrium price.

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