MC13 What is the impact of inflation on the Indian economy?
A. Reduced purchasing power of consumers
B. Reduced investment
C. Reduced economic growth
D. All of the above
Answer:D
MC13 What is the impact of inflation on the Indian economy?
A. Reduced purchasing power of consumers B. Reduced investment C. Reduced economic growth D. All of the above
Explanation: Inflation can have a range of impacts on the Indian economy. When prices are rising, consumers have reduced purchasing power, which can reduce demand for goods and services. Additionally, high inflation can reduce investment, as investors may be hesitant to invest in an economy with high inflation. Finally, inflation can reduce economic growth, as it can lead to reduced investment and reduced consumer spending.