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Economics miscellaneous

  1. Pump priming should be resorted to at a time of ?
    1. Inflation
    2. Deflation
    3. Stagflation
    4. Reflation
Correct Option: B

Pump priming is the action taken to stimulate an economy, usually during a recessionary/deflationary period, through government spending, and interest rate and tax reductions.Growth is accomplished through the increase in purchasing power experienced by those affected by the injection of funds, with the goal of prompting higher demand for goods and services.



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