Which of the following measures would contribute to inflation more ........

Indian Economic System(PCS) Inflation

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Which of the following measures would contribute to inflation more?

This questions was previously asked in

PCS Previous year General Studies paper (2013)

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Repayment of Public Debt

Borrowing from public to finance Budget deficit

Reducing Fiscal Deficit

Creating new money to finance Budget deficit

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Explanation:

Inflation is a measure of the rate of rising prices of goods and services in an economy. Increase in public spending, hoarding, tax reductions, price rise in international markets are the causes of inflation. These factors lead to rising prices. Also, increasing demands causes higher prices which leads to Inflation.