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How can the inflation created due to deficit financing be rectified?

15. How can the inflation created due to deficit financing be rectified?

1. If government expenditure increases the aggregate supply in the aggregate demand ratio
2. If all the investment is indicated as payment on national debt only
3. If only the aggregate demand is increased
4. All of the above

Answer: D) All of the above

Explanation:

A deficiency is a sum by which the uses in a financial plan surpass the pay. A Government Deficit is how much cash in the set spending plan by which the public authority consumption surpasses the public authority pay sum. This deficiency gives a sign of the monetary wellbeing of the economy. To lessen the shortage or the hole between the uses and pay, the public authority might scale back specific uses and increment income-producing exercises.