Which of the following anti-inflationary measures is suggested by modern economists?

Public debt

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Redeemable debt

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Voluntary debt

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Taxation

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Solution

The correct option is D
Taxation

Public borrowing is considered as a means to relieve the economy from inflationary pressures, as it absorbs excessive purchasing power from the lenders. But, modern economists considered taxation as a better anti-inflationary measure as compared to public debt.

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