Which one of the following is not the anti-inflationary measure in India?
- ACurbing disposable income of the people
- BChecking black markets
- CTax reform
- DIncrease in money supply
Solution & Step-by-step Explanation
Inflation occurs when there is too much money chasing too few goods. An increase in the money supply infuses extra liquidity into the market, driving demand up further, which escalates inflation rather than controlling it. Therefore, increasing the money supply is an inflationary factor, not an anti-inflationary measure.