Social Sector of Indian Economy – 8

8. Which one of the following is likely to be the most inflationary, in its effect ?

(a) Repayment of public debt
(b) Borrowing from the public to finance a budget deficit
(c) Borrowing from banks to finance a budget deficit
(d) Creating new money to finance a budget deficit

Answer : (d)

Explanation : No answer description available for this question. Let us discuss.

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