Inflation

1

What is the effect of inflation on economic growth and macroeconomy?

  1. It discourages the investment climate in the country.
  2. The interest rates see a downward trajetory with rising inflation.
  3. If rate of inflation is high, unemployment rate is low.
  4. It affects the returns a company offer and performance of the company.

Choose the correct option:

A
1 and 2
B
1, 3 and 4
C
All of the Above
D
None of the Above
2

What problems can be caused by high inflation in an economy?

  1. Lower interest rates
  2. It discourages savings
  3. It lowers exports
  4. Real incomes rise but nominal income falls

Select the correct code:

A
1 and 2 Only
B
2 and 3 Only
C
1, 3 and 4 Only
D
All of the above

Indian Economy