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Income Determination in the Open Economy

Which of the ...

Question

Which of the following factors contribute to inflation?

A

Decrease in prices of agricultural commodities

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B

Increase in money supply

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C

Fall in the production of industrial products

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D

None of these

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Solution

The correct option is B Increase in money supply
Increase in money supply
Increase in disposable income
Increase in public expenditure
Increase in Consumer Spending
Cheap Monetary policy

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