1. If farmers’ loans are waived in India, how will it affect the aggregate demand in the economy? 1. Private consumption impact via increase in private sector net wealth 2. Public sector impact via changes in government expenditure/taxes 3. Crowding-out impact via higher borrowings by State Governments 4. Crowding-in impact via higher credit availability as bank NPAs fall. Select the correct answer using the code given below.
Leave a Reply