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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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