Please answer this question very fast as fast as you can

Dear Student

7. increase
( With the cut in repo rate by RBI, flow of money in the economy increases which will cause increase in demand for goods and services.)

8. Option (b) Increase in aggregate demand 
( Decrease in cash reserve ratio increases the value of credit multiplier. As a result, because of increase in credit creation capacity of the commercial banks, the aggregate demand will rise in economy.)

9. inflationary gap
( Due to the excess of aggregate demand, there exists a difference (or gap) between the actual level of aggregate demand and full employment level of demand. This difference is termed as inflationary gap)

10. Option (d) No change in output/ employment but increase in general price level.
(Because economy is already at full employment level, there is no increase in level of output or employment but due to excess demand there is rise in the general price level.)


  • 0
Please answer fast????
  • 0
Please answer this????fast please
  • 0
What are you looking for?