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:
Solution
Inflation is a general increase in prices and fall in the purchasing value of money.
More Economics Questions
- An increase in demand for a good will cause the equilibrium price to ______ and the equilibrium quantity to ______.
- In economic terms, the total market value of all final goods and services produced in a given year is known as.........
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- What is the uniform GST rate that has been fixed up for lottery prizes by the GST Council?
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