A country embarks on deficit financing in order to

Deepthinker581

4 years ago

It's suppose to be deflation and not inflation

Adaobiiiii

4 years ago

Deficit financing which leads to a correspondingly greater increase in total money supply (including bank credit and its multiple expansion) has a greater inflationary potential, so it must be restraine

of course answer C is not correct.

it should be D

TheLivingLegend01

3 years ago

A country embarks on deficit financing in order to D. stimulate investment.

Deficit financing is a government policy where the government spends more than it collects in revenue, thereby creating a budget deficit. The government can finance this deficit by borrowing from both domestic and foreign sources, printing more money, or selling government bonds.
Deficit financing is not typically used to increase revenue, reduce aggregate demand, or curb inflation. In fact, deficit financing can lead to inflation if it is not managed properly, as an increase in government spending can lead to an increase in demand for goods and services, which can lead to higher prices.

colikstan

3 years ago

Deficit financing causes inflation not curb
Answer is D