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Economics › Inflation

Economics › Inflation

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

Options

(a)

Repayment of public debt.

(b)

Borrowing from the public to finance a budget deficit.

(c)

Borrowing from the banks to finance a budget deficit.

(d)

Creation of new money to finance a budget deficit.

Answer

(D)