How do you get out of poverty?
Poverty, where it is prevalent, is
in the form of a vicious circle. This is because poverty causes less
expenditure, which means lesser revenue for firms, lesser production, and
consequently low income and more poverty. A person can get out of poverty by increasing
demand (In Economic context). This can be done by increasing credit supply in
the economy. The government can undertake welfare schemes, capital investments
(For injections in the economy), and can reduce Bank Rates and reserve ratios
to increase credit supply in the economy.
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