UPSC Civil Services Prelims 2018
Question 28 of 61Indian Economy
Which one of the following is the most likely effect of a sustained increase in crude oil prices on India’s economy?
AImprovement in current account balance and lower inflation
BHigher import bill, pressure on inflation and possible widening of current account deficit
CAutomatic reduction in fiscal deficit
DSharp fall in agricultural output in all seasons
Correct Answer
The correct answer is hidden
Explanation
38 words hidden ... across sectors. Oil price shocks may further affect fiscal management if fuel taxes or subsidies are adjusted. The ... 31 words hidden