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Measures to correct excess and deficit demand

Posted by Ankur Chaurasiya 1 year, 8 months ago

CBSE > Class 12 > Economics

3 answers

Khushi Vajpayee 1 year, 6 months ago

To correct excess demand 1 government less their spendings 2 Government takes incriment in taxes so that disposable income of person reduces and money supply decreases To correct deficit demand 1 government increase their spendings 2 Government takes reduction in taxes

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Tanisha Soni 1 year, 8 months ago

Monetory policy For excess demand crr , repo , reverse repo , slr Dec demand Inc For defict deman crr , slr Inc demand Dec

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Shivam Sharma 1 year, 8 months ago

Monetary policy measures to correct excess demand situation are increase in CRR, increase in bank rate, etc. Fiscal policy measure to correct deficient demand situation are: reduction in tax rates, increase in public expenditure, etc.

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