MC2 What is the main cause of inflation in India?
A. High government spending
B. Increase in global oil prices
C. Excessive money supply
D. All of the above
Answer:D
MC2 What is the main cause of inflation in India?
A. High government spending B. Increase in global oil prices C. Excessive money supply D. All of the above
Explanation: Inflation in India is caused by a combination of factors, including high government spending, increases in global oil prices, and excessive money supply. When the government spends more money than it collects in taxes, it increases the amount of money in circulation, which can lead to inflation. Similarly, when global oil prices increase, it can lead to higher prices for goods and services, which can also contribute to inflation.