Multiple choice

An effective short term measure to check inflation is to

  1. keep budgetary deficit under check

  2. streamline public distribution system

  3. enhance production of all consumer goods

  4. enhance production of essential goods
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A Correct answer
Explanation

Controlling the budgetary deficit is a primary fiscal policy tool to reduce money supply and curb inflation in the short term. While supply-side measures like streamlining distribution or increasing production are important, they are generally considered medium to long term strategies.

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