-
Which is NOT a measure undertaken by government to check inflation ?
-
- Increase in consumption
- Increase in production
- Reduction in Deficit financing
- Taxation measures
- Increase in consumption
Correct Option: A
One of the important fiscal measures undertaken by governments to check inflation is to cut personal consumption expenditure. It is done by raising the rates of personal, corporate and commodity taxes and even levying new taxes. The government can also reduce unnecessary expenditure on non-development activities in order to curb inflation.
