Match the following:
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: i-d, ii-c, iii-a, iv-b
(i-d) If income increases, savings increases.
(ii-c) AD and AS approach is one of the ways of determining equilibrium. The other approach is S-I approach.
(iii-a) Deficient demand happens when economy is operating at a level below the full employment.
(iv-b) Moral suasion is an advice by RBI to banks in matter related to lending and other matters via discussions and letters to commercial banks