Arrange the following statements in sequential order.

(A) Aggregate demand will increase.
(B) Induce the public to borrow more.
(C) Central Bank will decrease the reverse repo rate.
(D) Ex-ante aggregate demand is less than Ex-ante aggregate supply

Choose the correct answer from the options given below:

(D), (C), (B), (A)

The correct answer is Option (3) → (D), (C), (B), (A)

(D) Ex-ante aggregate demand is less than Ex-ante aggregate supply : The economy is facing a situation where the planned spending (aggregate demand) is less than the planned output (aggregate supply). This is the initial problem — there is deficient demand in the economy.
(C) Central Bank will decrease the reverse repo rate. To address the deficient demand, the central bank lowers the reverse repo rate, making it less attractive for commercial banks to park funds with the RBI, thus encouraging lending.
(B) Induce the public to borrow more. : As borrowing becomes cheaper (due to lower interest rates), public is encouraged to take loans and spend more.
(A) Aggregate demand will increase. With increased borrowing and spending, aggregate demand rises, correcting the initial imbalance.