Which one of the following is likely to be the most inflationary in its effects?
Options
(a)Repayment of public debt
(b)Borrowing from the public to finance a budget deficit
(c)Borrowing from the banks to finance a budget deficit
(d)Creation of new money to finance a budget deficit
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Class 12Government Budget and the Economy— NCERT Economics, Chapter 5. The government budget — the Annual Financial Statement required by Article 112 — lists estimated receipts and expenditure for the financial year (1 April–31 March). It…
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