1.

The state of deflation appears in the economy due to various reason: 1 When the Government withdraws money from circulation. 2. When Government imposes heavy direct taxes or takes heavy loans from the public 3. When the Central Bank buys the securities in open market Choose the correct reason.

A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 1, 2, 3
Answer» B. 2 and 3


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