alleryStart learning →Which one of the following is likely to be the most inflationary in its effect?
ARepayment of public debt
BBorrowing from the public to finance a budget deficit
CBorrowing from banks to finance a budget deficit
DCreating new money to finance a budget deficit
Answer & Solution
Correct answer: D. Creating new money to finance a budget deficit
UPSC CSE Prelims 2013 (GS-I, Set A), Q.84. Official answer key: D.
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