Which concept involves a one-shot injection of government expenditure into a depressed economy with the aim of boosting business confidence and…

CA Foundation · Business Economics · MTP · January 2025
Which concept involves a one-shot injection of government expenditure into a depressed economy with the aim of boosting business confidence and encouraging larger private investment?
(A) A. Pump Priming
(B) B. Deficit Financing
(C) C. Compensatory Spending
(D) D. Public Spending

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Pump Priming

Topics: Determination of National Income

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