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Deficit financing creates additional paper currency to fill the gap between expenditure and revenue.

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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 :

(a) inflation 

(b) devaluation 

(c) deflation 

(d) demonetization

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This device aims at economic development but if it fails, it generates inflation.

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