Which of the following is a fiscal measure used to curb inflation?
An increase in direct tax is a fiscal measure that can curb inflation by reducing disposable income and aggregate demand. Credit control and changes involving the currency…
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Which of the following is a fiscal measure used to curb inflation?
Answer and explanation
Correct answer A
An increase in direct tax is a fiscal measure that can curb inflation by reducing disposable income and aggregate demand. Credit control and changes involving the currency belong to monetary measures rather than taxation policy.
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Karnataka SET (KSET)
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