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      Question

      Deficit Financing creates additional Paper currency to

      fill the gap between expenditure and revenue. This device aims at economic development but if it fails, it generates:
      A Inflation Correct Answer Incorrect Answer
      B Deflation Correct Answer Incorrect Answer
      C Demonetisation Correct Answer Incorrect Answer
      D Devaluation Correct Answer Incorrect Answer

      Solution

      Inflation is a general increase in prices and fall in the purchasing value of money.

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