Question 20 of 66Indian Economy

Which of the following are likely consequences of a high fiscal deficit? 1. Increased government borrowing 2. Possibility of crowding out private investment 3. Inflationary pressure under certain conditions Select the correct answer using the code given below:

A1 only
B1 and 2 only
C2 and 3 only
D1, 2 and 3

Correct Answer

The correct answer is hidden

Explanation

27 words hidden ... under certain macroeconomic conditions. It may also generate inflationary pressure, especially if monetized or if it ... 28 words hidden