You have reached 5 of 7 scores, (71.43%) Will Printing of additional money not lead to more money with the people resulting into demand pull inflation? Kindly reply
@Abhishek Dandiyal Deficit financing leads to influx of money in the economy which ultimately comes to the individual and raises their purchasing power leading to increase in demand causing price rise(inflation)
sumansiddartha j m
7 years ago
Your time: 00:06:05 You have reached 5 of 7 scores, (71.43%)
Pooja Soni
7 years ago
5/7
Akshansh Moudgil
7 years ago
5 of 7 questions answered correctly
Your time: 00:05:18
Q6 statement 2 plz explain properly
SRUSHTI DESHMUKH
7 years ago
5/ 7 Thanks Forum. Q 6 .There is intermingling of concepts, Shall we assume that currency is being printed to manage the deficit itself in first instance? Printing more currency can also imcrease the money in circulation and cause Demand pull inflation ; or more currency– more funds to banks– Credit Inflation can also come… Please clarify. http://www.economicsdiscussion.net/inflation/types/7-types-of-inflation-on-basis-of-rate-of-increase-of-prices/8151 Q 5 . We always read that Since Core inflation includes the food and energy, it does not reflect the real trend of Inflation due to high fluctuations in the short run and hence the ques needs to be specific.
Despite that Defence is still considered Revenue Expenditure because Defense assets donot raise or build capital. It is a traditional practise in economics to keep it so. Now I have no links to prove you, if you can disprove me with standard sources I will be most obliged.
The defense expenditures which are needed for smooth operation of the standing armed forces is a revenue expenditure. However, purchase of equipments produces assets, so that would be a Capital expenditure. Here’s the link https://academy.gktoday.in/article/components-of-revenue-expenditure/ So i guess including Defence expenditure in the MCQ might prove controversial?
Playmaker
7 years ago
Results 5 of 7 questions answered correctly
Your time: 00:02:16
You have reached 5 of 7 scores, (71.43%)
Try one more time!
7 years ago
5/7
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Economy :'(
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Q7 why it won’t be credit inflation?
me too marked the same
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Will Printing of additional money not lead to more money with the people resulting into demand pull inflation? Kindly reply
@Abhishek Dandiyal
Deficit financing leads to influx of money in the economy which ultimately comes to the individual and raises their purchasing power leading to increase in demand causing price rise(inflation)
Your time: 00:06:05
You have reached 5 of 7 scores, (71.43%)
5/7
5 of 7 questions answered correctly
Your time: 00:05:18
Q6 statement 2 plz explain properly
5/ 7 Thanks Forum.
Q 6 .There is intermingling of concepts, Shall we assume that currency is being printed to manage the deficit itself in first instance? Printing more currency can also imcrease the money in circulation and cause Demand pull inflation ; or more currency– more funds to banks– Credit Inflation can also come… Please clarify.
http://www.economicsdiscussion.net/inflation/types/7-types-of-inflation-on-basis-of-rate-of-increase-of-prices/8151
Q 5 . We always read that Since Core inflation includes the food and energy, it does not reflect the real trend of Inflation due to high fluctuations in the short run and hence the ques needs to be specific.
Exactly. I have mentioned the same. +1
you have subscribed GS SCORE Mains Test Series? The same person?
“Additional” is mentioned…..you are printing additional money…if you have defecit…so it will lead to defecit induced inflation
3/7
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time to revise economy has arrived !
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3..
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Despite that Defence is still considered Revenue Expenditure because Defense assets donot raise or build capital. It is a traditional practise in economics to keep it so. Now I have no links to prove you, if you can disprove me with standard sources I will be most obliged.
The defense expenditures which are needed for smooth operation of the standing armed forces is a revenue expenditure. However, purchase of equipments produces assets, so that would be a Capital expenditure. Here’s the link https://academy.gktoday.in/article/components-of-revenue-expenditure/
So i guess including Defence expenditure in the MCQ might prove controversial?
Results
5 of 7 questions answered correctly
Your time: 00:02:16
You have reached 5 of 7 scores, (71.43%)
5/7