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Primary Deficit & Revenue Deficit

Which of the ...

Question

Which of the following effects of deficit financing of the Central Government affects the common man most adversely?

A

Forced savings

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B

Credit creation by banks

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C

Inflationary rise in prices

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D

Changes in the pattern of social investment

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Solution

The correct option is D Inflationary rise in prices
Inflationary rise in prices affects the common man most adversely as a result of deficit financing.

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