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UPSC Prelims

Economy / अर्थव्यवस्था

Theme:

NATIONAL INCOME, INFLATION AND GDP

Q 2013, NATIONAL INCOME, INFLATION AND GDP

Consider the following statements: 1. Inflation benefits the debtors. 2. Inflation benefits the bondholders. Which is/are correct?

निम्नलिखित कथनों पर विचार कीजिए:1. मुद्रास्फीति ऋणियों को लाभ पहुंचाती है।2. मुद्रास्फीति बॉण्ड-धारकों को लाभ पहुंचाती है।उपर्युक्त कथनों में से कौन-सा/से सही है/हैं?

Inflation

Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc.

Inflation measures the average price change in a basket of commodities and services over time.

Inflation redistributes wealth from creditors to debtors i.e. lenders suffer and borrowers benefit out of inflation.

Debtors gain from inflation because they repay creditors with money that is worth less in terms of purchasing power.

Inflation (मुद्रास्फीति) refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc.

Inflation (मुद्रास्फीति) measures the average price change in a basket of commodities and services over time.

Inflation (मुद्रास्फीति) redistributes wealth from creditors to debtors i.e. lenders suffer and borrowers benefit out of inflation.

Debtors gain from inflation because they repay creditors with money that is worth less in terms of purchasing power.

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