India Said to Mull Plan to Pay Cash to Farmers

The video discusses the potential impact of government financial changes on GDP, focusing on the consolidation of subsidies into direct grants. It highlights investor reactions, particularly in the bond market, to the proposed fiscal policies. The discussion also covers the implications for monetary policy, with concerns about inflation due to cash handouts to farmers, and the cautious stance of the Reserve Bank of India.

What is the expected impact of integrating various subsidies into a direct grant system on GDP?

• Significant increase

• Marginal impact

• No impact

• Significant decrease

How did bond investors react to the proposed financial changes?

• Negatively

• Indifferently

• With skepticism

• Very favorably

What was the main concern of bond investors regarding the fiscal changes?

• Currency devaluation

• Fiscal slippage

• Increased taxes

• Higher interest rates

What potential effect could the fiscal policy changes have on inflation?

• No effect

• Stabilizing

• Inflationary

• Deflationary

How might the Reserve Bank of India respond to the fiscal policy changes?

• By increasing government spending

• By lowering interest rates

• By ignoring the changes

• By taking a cautious approach