Use app×
Ask a Question
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE

What happens when (i) credit is made costlier (ii) Credit is made cheaper.

← Prev Question Next Question →
0 votes
134 views
in Economics by (90.7k points)
closed by
What happens when (i) credit is made costlier (ii) Credit is made cheaper.
Play Quiz Games with your School Friends. Click Here

1 Answer

0 votes
by (91.8k points)
selected by
 
Best answer
When credit is made costlier, it leads to contraction of credit and it corrects excess demand or inflationary gap.
(ii) When credit is made cheaper, it leads to extension of credit, and it corrects deficient demand or deflationary gap.
← Prev Question Next Question →

Find MCQs & Mock Test

  1. JEE Main 2025 Test Series
  2. NEET Test Series
  3. Class 12 Chapterwise MCQ Test
  4. Class 11 Chapterwise Practice Test
  5. Class 10 Chapterwise MCQ Test
  6. Class 9 Chapterwise MCQ Test
  7. Class 8 Chapterwise MCQ Test
  8. Class 7 Chapterwise MCQ Test

Related questions

0 votes
1 answer
Deficient demand leads to:
asked Apr 19, 2022 in Economics by aryam (122k points)
0 votes
1 answer
Component of fiscal policy
asked Apr 19, 2022 in Economics by aryam (122k points)

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

User Contribution to Sarthaks eConnect
Managed by Sarthaks Digitizing India
...