Business Studies, asked by annurana12, 1 month ago

implications of deficit financing

Answers

Answered by rsethulekshmi1
0

Answer:

Borrowings are considered a better source as they do not increase the money supply which is regarded as the main cause of inflation. On the other hand, deficit financing may lead to inflationary trends in the economy due to more money supply.

Answered by anuragjana316
1

Answer:

Your answer is:-

Explanation:

Deficit Financing (Printing of new currency):

Borrowings are considered a better source as they do not increase the money supply which is regarded as the main cause of inflation. On the other hand, deficit financing may lead to inflationary trends in the economy due to more money supply.

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