Which one of the following is likely to be the most inflationary in its effects ........

Economic Affairs Money Supply and Monetary Policy

Which one of the following is likely to be the most inflationary in its effects?

This questions was previously asked in

UPSC CSP Previous Year Paper (2021)

Repayment of public debt

Borrowing from the public to finance a budget deficit

Borrowing from the banks to finance a budget deficit

Creation of new money to finance a budget deficit

Creation of new money to finance a budget deficit as more money will be printed and suppied in market which in turn will increse inflation greatly.

Submit Error