In order to deal with a situation of deflation in the economy, which of the following measures will be taken?

1. High margin requirements imposed by RBI
2. Decrease in bank rate 
3. Increase in statutory liquidity ratio
4. Decrease in cash reserve ratio

2 and 4

The correct answer is option 2: 2 and 4

Situation of deflation can be solved with increasing the level of aggregate demand in the economy. It can be achieved through decreasing the bank rate and decreasing the CRR.

• Decrease in bank rate: Lowering the bank rate makes borrowing cheaper, encouraging spending and investment, which can help combat deflation.
• Decrease in cash reserve ratio (CRR): Reducing the CRR allows banks to keep less money in reserve and lend more, increasing the money supply and helping to counteract deflation.

Why the other options are incorrect:

• High margin requirements: Increasing margin requirements would make it more expensive for investors to borrow money to purchase assets. This would likely discourage spending and worsen deflation.
• Increase in statutory liquidity ratio (SLR): The SLR is similar to the CRR but applies to investments in government securities. Increasing it would tie up more of banks' funds, reducing their lending capacity and potentially hindering efforts to combat deflation.

If high margin requirements are imposed by the RBI it would reduce the purchasing power of individual. Margin requirement is the difference between the market value of security offered by the borrower against the loan amount granted. Increase in the SLR, would reduce the money supply in the economy resulting in decrease in purchasing power of individual.