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Fiscal deficit is necessarily inflationary in …

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Fiscal deficit is necessarily inflationary in nature. Do you agree? Give reasons.

    • Posted by Drishika Gupta 7 years, 10 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Ribhav Saini 7 years, 10 months ago

    No its not necessarily inflationary in nature when we borrow money in situation of deficient demand However if we borrow at full employment level then it wil cause inflation

    3Thank You

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