Subject: Inflation

With reference to the Indian economy, demand-pull inflation can be caused or increased by which of the following:

1.Expansionary policies
2.Fiscal stimulus
3.Inflation-indexing of wages
4.Higher purchasing power
5.Rising interest rates

Select the correct answer using the code given below:

In India, which one of the following is responsible for maintaining price stability by controlling inflation ?
(a) Department of Consumer Affairs
(b) Expenditure Management Commission
(c) Financial Stability and Development Council
(d) Reserve Bank of India