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    5. Which of the following is a cause of Deficient Demand (Deflationary gap)?

    Question

    Which of the following is a cause of Deficient Demand

    (Deflationary gap)?
    A Government expenditure > Government revenue Correct Answer Incorrect Answer
    B Increase in autonomous investment Correct Answer Incorrect Answer
    C Surplus on balance of payments Correct Answer Incorrect Answer
    D Cut in capital formation Correct Answer Incorrect Answer

    Solution

    The correct answer is D

    Practice Next
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