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SSC CGL 2019 PYQ — Question 30

SSC CGL - 4th June 2019 - Shift 3 • General Awareness • Q30

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If there is a lack of money supply in comparison to the supply of goods and services, then the possible consequence would be ______.

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Correct answer: B

Explanation

The correct answer is option 2 i.e. Deflation.

If there is a lack of money supply in comparison to the supply of goods and services, then the possible consequence would be _________. 

Deflation

What is Deflation?   
  • Deflation is the decline in the prices of goods and services that occur when the rate of inflation falls below 0%.
  • It will take place naturally, if and when the money supply of an economy is limited.
  • It indicates deteriorating conditions.
  • It is normally linked with significant unemployment and low productivity levels of goods and services.