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 government expenditure
B. Increase in bank rate
C. Increase in CRR
D. Open market sale of securities
Answer: Option A
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 'Goods and Services Tax' on spices is:
A. 12%
B. 5%
C. 18%
D. 0%

Correct Answer: Option B


Explanation:
Spices generally attract 5% GST.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a characteristic of the 'Just Transition' framework in climate policy?
A. Only focusing on technological solutions without social considerations
B. Ensuring that the shift to a low-carbon economy is fair and inclusive, protecting workers and communities dependent on carbon-intensive industries
C. Ignoring the social consequences of climate policies
D. Only maximising the speed of decarbonisation regardless of social costs

Correct Answer: Option B


Explanation:
A just transition seeks to ensure that the benefits and costs of the transition to a low-carbon economy are shared equitably and that workers and communities affected by the decline of carbon-intensive sectors receive adequate support.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'veblen effect' is associated with:
A. perfect competition
B. inferior goods
C. conspicuous consumption where higher prices increase demand
D. homogeneous goods

Correct Answer: Option C


Explanation:
Veblen effect occurs when higher prices increase the prestige of a good and therefore its demand.

This question belongs to: Economy GK Economy Set 1