B. Increase in private investment stimulated by government spending
C. Decrease in private investment due to government spending
D. Increase in imports due to higher income
Answer: Option B
Solution (By JKSSB Mock Tests)
Crowding in occurs when government spending (especially on infrastructure) raises the productivity of private capital and stimulates additional private investment.
Explanation:
M1 is referred to as narrow money and consists of currency with the public, demand deposits with banks, and other deposits with RBI. M3 is broad money.
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