ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Inflation
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Deflation
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Foreclosure
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None of the above
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Detailed explanation-1: -Inflation is generally associated with an abnormal increase in the quantity of money resulting in abnormal rise in prices. Inflation thus, represents a situation whereby the pressure of aggregate demand for goods and services exceeds the available supply of output.
Detailed explanation-2: -Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.
Detailed explanation-3: -Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping.
Detailed explanation-4: -Inflation is the increase in the prices of goods and services over time. Inflation cannot be measured by an increase in the cost of one product or service, or even several products or services. Rather, inflation is a general increase in the overall price level of the goods and services in the economy.
Detailed explanation-5: -Primary Causes. Increase in Public Spending. Deficit Financing. Increased Velocity of Circulation. Population Growth. Hoarding. Genuine Shortage. Exports. More items