Q. Which one of the following is likely to be the most inflationary in its effect?
[A] Repayment of public debt
[B] Borrowing from the public to finance a budget deficit
[C] Borrowing from banks to finance a budget deficit
[D] Creating new money to finance a budget deficit
Answer:D
Notes:
Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS
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