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Aggregate demand can be increased by: -

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Question

Aggregate demand can be increased by:

Options

  • Increasing bank rate.

  • Selling government securities by Reserve Bank of India.

  • Increasing cash reserve ratio.

  • None of the above.

MCQ

Solution

None of the above.

Explanation:

The aggregate demand for goods and services can be enhanced.

  1. A falling bank rate.
  2. Investing in government securities
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