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      Question

      Deficit financing is a tool of which economic

      policy?
      A Credit Policy Correct Answer Incorrect Answer
      B Welfare Policy Correct Answer Incorrect Answer
      C Fiscal Policy Correct Answer Incorrect Answer
      D Monetary Policy Correct Answer Incorrect Answer

      Solution

      Deficit financing, which involves government borrowing to cover budget shortfalls, is a fundamental aspect of fiscal policy. It impacts overall economic activity by influencing government spending and taxation.

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