CBSE Class 12-commerce Answered
the inflation rate is alarming high in the Indian economy. explain the steps that should be taken by the government in its budgetary policy to control the inflation rate?
Asked by goutamgoyal2202 | 04 Dec, 2018, 01:48: PM
Expert Answer
Following steps will be taken by the government to control inflationary condition in the economy:
The government should reduce expenditure on public work programme, education and public welfare.
They should increase tax burden on the households and producers to reduce cash circulation.
The bank rate should be increased to raise the cost of credit. Hence the demand for credit will decrease and the circulation of money will also decline.
Answered by Tharageswari S | 05 Dec, 2018, 09:27: AM
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