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According to the Reserve Bank of India Credit and Monetary
Policy, the rate of increase in the Minimum Support Price
(MSP) of food grains has been more than that of the rate of
inflation. This would mean that
(A) Inflation will be more than the price of food grains
(B) There will be an increase in the availability of food
grains.
(C) Increase in the price of food grains will be more than
proportionate to the rate of inflation.
(D) There will be a reduction in the open market price of
good grains.
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Answer Posted / guest
(C) Increase in the price of food grains will be more than
proportionate to the rate of inflation.
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