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  9. Q48

UPPSC PCS 2016 · Question 48 of 145

What is the effect of deficit financing on economy?

Economy

  1. AReduction in taxes
  2. BIncrease in wages
  3. CIncrease in money supplyCorrect
  4. DDecrease in money supply

Answer: C. Increase in money supply

Explanation

Answer as per the official UPPSC answer key.

Source: edurev.in UPPSC Prelims 2016 GS Paper I with Answer Key and Solutions; answers per official UPPSC key (Booklet C)

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