Question

Which of the following was not immediate cause of 1991 economic crisis:

• A. Rapid growth of population
• B. Severe inflation
• C. Expanding Fiscal deficit
• D. Rising current account deficit

Answer 1

Answer: (A)

Rapid growth of population

During 199, the economic crisis arose due to many economic problems as the government was facing high fiscal deficit due to rising current account deficit which acted as two spiral rate which lead to heavy inflation in the economy.