Deficit financing creates additional paper currency to fill the gap between expenditure and revenue. This device aims at economic development but if it fails, it generates : [IFS 1990]

Deficit financing creates additional paper currency to fill the gap be

1.	Deficit financing creates additional paper currency to fill the gap between expenditure and revenue. This device aims at economic development but if it fails, it generates : [IFS 1990]
A.	inflation
B.	devaluation
C.	deflation
D.	demonetization
Answer» B. devaluation

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Deficit financing creates additional paper currency to fill the gap between expenditure and revenue. This device aims at economic development but if it fails, it generates : [IFS 1990]

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