Question

Consider the following economic indicators and their expected impact on an economy: A rise in the fiscal deficit   An increase in the repo rate by the central bank   Depreciation of the domestic currency   Which of the following correctly describes their likely effects ?  

A 1 - Expansionary, 2 - Contractionary, 3 - Inflationary
B 1 - Contractionary, 2 - Expansionary, 3 - Deflationary
C 1 - Deflationary, 2 - Expansionary, 3 - Growth Stimulating
D 1 - Inflationary, 2 - Neutral, 3 - Contractionary
E 1 - Neutral, 2 - Inflationary, 3 - Deflationary
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