Home » Indian Economy » Nature of Indian Economy » Question
  1. In an economy a condition of lack of money supply in comparison to the supply of the goods services, will lead to :
    1. Inflation
    2. Deflationm
    3. Hyperinflation
    4. Devaluation
Correct Option: B

deflation may be caused by a combination of the supply and demand for goods and the supply and demand fro money, specifically the supply of money going down and the supply of goods going up.



Your comments will be displayed only after manual approval.