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What is pump priming?

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What is pump priming?

Posted by Guneet Kaur 1 year, 11 months ago

CBSE > Class 12 > Economics

1 answers

Preeti Dabral 1 year, 11 months ago

Pump priming is the action taken to stimulate an economy, usually during a recessionary period, through government spending and interest rate and tax reductions. The term pump priming is derived from the operation of older pumps - a suction valve had to be primed with water so that the pump would function properly.

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