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Explain the role of taxation and governm...

Explain the role of taxation and government expenditure in reducing aggregate demand in an economy.

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Knowledge Check

  • Aggregate saving in an economy is :

    A
    Positive throughout
    B
    Positive in the beginning and then negative
    C
    Negative throughout
    D
    Negative initially and then positive

  • Aggregate demand can be increased by

    A
    increasing bank rate
    B
    selling government securities by RBI
    C
    increasing CRR
    D
    None of the above

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