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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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