Economics · Deficit Financing
In deficit financing, the gap between expenditure and revenue is filled by printing additional paper currency. If this mechanism fails, which of the following situations arises?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Inflation✓
- 2Deflation
- 3Currency Devaluation
- 4Demonetization
Correct answer
Inflation
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