In the context of economic development, the 'Big Push' theory is associated with:
A. Gradualism in investment
B. Complete reliance on market forces
C. The need for a minimum quantum of investment to overcome indivisibilities
D. Only agricultural development
Answer: Option C
Solution (By JKSSB Mock Tests)
The Big Push theory, associated with Rosenstein-Rodan, argues that a large, coordinated investment is required to overcome complementarities and indivisibilities in developing economies.
Explanation:
Moral suasion involves the central bank using persuasion, advice and appeals to influence the lending behaviour of commercial banks without legal compulsion.
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