Economy, asked by tanishsingh7488, 1 year ago

How does deficit financing lead to inflation?

Answers

Answered by Ally1111

Deficit financing may lead to inflation. Due to deficit financing money supply increase and the purchasing power of the people also increase which the aggregate demand and the price also increases .

Previous Question

Next Question

Similar questions

English, 7 months ago

which is the higher post? IAS OR DEPUTY COLLECTOR? plzz tell want to know about this...

History, 7 months ago

what are the different source of history...

English, 7 months ago

Explain the phrase ‘once more’ in context to footprints without feet...

English, 1 year ago

How does shakespeare present claudius in hamlet?

Sociology, 1 year ago

How do communal division affect democracy?

English, 1 year ago

what is the passive voice of - child is making a noise...

English, 1 year ago

When I go to the club _____ my friends are partying, I never know what to _____. 1. were / where 2. where / wear 3. were / we’re 4. we’re / wear...

Chemistry, 1 year ago

Sneha and her grandfather went for a morning walk. Suddenly it started raining. They went to shade to protect themselves from rain. After sometime the rain stopped and they came out from the shade and went out for walking in the park. Sneha observed that some living organisms were coming out of soil. i. Name the living organisms that were coming out of the soil. ii. Why were they...