The Correct answer is Only B, C and D. Explanation & Key Takeaways: • Inflation increases the prices of food and services. • Inflation erodes the value of money, hence poor people have to spend more money to purchase the same amount of goods. Which ultimately increases poverty among the people. • Hence statement A is incorrect. • When the government goes for an increase in expenditure then the money in the market gets redistributed to the people. • The government implements this measure to increase the money supply in the market. • This increases economic activities in the economy and ultimately leads to a reduction of poverty among people. • Hence statement B is correct. • Deficit financing is another way of increasing the money supply in the market so it also helps in the reduction of poverty. • Hence statement C is correct. • Higher savings leads to higher capital formation. • This increases economic activities in the economy and ultimately leads to a reduction of poverty among people. • Hence statement D is correct.