Which of the following is NOT a measure to control inflation? MCQ with Answer and Explanation

Which of the following is NOT a measure to control inflation?
A. Increase in CRR
B. Increase in bank rate
C. Open market sale of securities
D. Increase in government expenditure
Answer: Option D
Solution (By JKSSB Mock Tests)
Increase in government expenditure would increase aggregate demand and potentially worsen inflation. The other measures reduce money supply or credit and help control inflation.

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Practice More Economy Set 1 Questions

Question #1
The 'average propensity to consume' is calculated as:
A. total saving divided by total income
B. total consumption divided by total income
C. change in consumption divided by change in income
D. total income divided by total consumption

Correct Answer: Option B


Explanation:
APC is total consumption divided by total income.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Banking Regulation Act' was passed in which year?
A. 1934
B. 1956
C. 1949
D. 1969

Correct Answer: Option C


Explanation:
The Banking Regulation Act was passed in 1949.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a non-debt capital receipt?
A. Borrowings from the market
B. Treasury bills issued
C. External loans
D. Disinvestment proceeds

Correct Answer: Option D


Explanation:
Disinvestment proceeds are non-debt capital receipts as they involve sale of assets and do not create a future repayment liability.

This question belongs to: Economy GK Economy Set 1