Q. Increased income in the hands of the rural population will lead to which of the following outcomes?
1. Increased production levels and higher capacity utilization.
2. Consumer Price Inflation will come down.
Which of the statements given above is/are correct?
Answer: C
Notes:
Both statements are correct.
- Increased income in the hands of the rural population will lead to higher consumption resulting in increased production levels and higher capacity utilization. In terms of inflation, rising foodgrain production will help bring down consumer price inflation.
Source: Article
