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
Answer : (d)
Explanation
Explanation : No answer description available for this question. Let us discuss.
Indian Public Finance » Exercise - 14. Fiscal deficit in the budget means : (a) revenue deficit plus the net borrowings of the governments (b) budgetary deficit plus the net borrowings of the government (c) capital deficit plus revenue deficit (d) primary deficit minus capital deficit
Industrial Sector in Indian Economy » Exercise - 14. At which one of the following budget sessions did the Navratna Status of the Indian industries evolve? (a) 1991-1992 (b) 1997-1998 (c) 2001-2002 (d) 2006-2007
Social Sector of Indian Economy » Exercise - 12. Economic growth is usually coupled with : (a) deflation (b) inflation (c) stagflation (d) hyper inflation
Indian Public Finance » Exercise - 16. Inflation is caused by : (a) increase in supply of goods (b) increase in cash with the government (c) decrease in money supply (d) increase in money supply
Social Sector of Indian Economy » Exercise - 16. Consider the following factors : 1. Deficit financing 2. Black money in an economy 3. High rate of population growth Which of the factors given above are responsible for the Demand-Pull inflation in an economy ? (a) 1 and 2 (b) 1 and 3 (c) 2 and 3 (d) All of these