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Home Questions & Answers General Knowledge Economics Question Answers With reference to inflation in India, which of the following statements is correct?

    With reference to inflation in India, which of the following statements is correct?

  • Controlling the inflation in India is the responsibility of the Government of India only
  • The Reserve Bank of India has no role in controlling the inflation
  • Decreased money circulation helps in controlling the inflation
  • Increased money circulation helps in controlling the inflation
  • Explanation:

    Decreasing the money circulation decreases the demand which helps in controlling the inflation. It is mainly effective for demand pull inflation.