WBCS.LIVE practice question

Which of the following statements is related to positive economics?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Inflation is better than deflation.
  2. Inequalities in the distribution of wealth and incomes should be reduced.
  3. More production of luxury goods is not good for a less developed country.
  4. An increase in money supply implies a price rise in an economy.

Correct answer and explanation

Correct answer: An increase in money supply implies a price rise in an economy.