Direct tax: Merits 1. Easy to collect as it is fixed and collected directly from source. 2. It dirctly affects the purchasing power of the people so it is an instrument in the hands of the government to reduce liquidity. 3. Makes people more responsible as they know that the public spending is because of … Read more

Urbanisation means growth of the urban area which is mainly due to the immigration.  The main reasons for immigration are:  1. Job opportunities are limited to a particular area.  2. Weather conditions  3. Disaster in certain placed i.e. Rehabilitation(unpredictable environment conditions)  4.  For Education among the youth  5.  Trade or tourism  6. Better services/amenities(medical facilities, entertainment sources)

Inflation arises when the demand increases and there is a shortage of supply.So by anyways if government is able to reduce the money in the hands of the people it will be able to reduce the demand as the purchasing pwer of the people will reduce. There are two policies in the hands of the … Read more