Question

The rising prices in India can be checked through:
(i) Budgetary policy
(ii) Monetary policy
(iii) Increasing production
(iv) Increasing income levels

• A. i & ii
• B. i, ii & iv
• C. i, ii & iii
• D. i, ii, iii & iv.

Answer 1

The correct option is C i, ii & iii

There are many policies through which rise in prices can be checked, such as

1. Budgetary policy- These are government policies that are related to the government revenue and expenditure through which government regulates rise in price.

2. Monetary policies - Monetary policy refers to various central bank policies which includes both qualitative as well as quantitative measures that regulates the rise in price.

3. Increase in production - If the production of the relevant goods are increased then their supply in the market will also increase which automatically decrease the price of these goods.