Giving reasons, state whether the statements are true or false:Fiscal

1.	Giving reasons, state whether the statements are true or false:Fiscal deficit is non-inflationary.
Answer» False. Reason: Fiscal deficit can be inflationaiy when we are at full employment level. It is so because large fiscal deficits creates excess money supply that creates inflation

Giving reasons, state whether the statements are true or false:Fiscal deficit is non-inflationary.

Answer»

False.

Reason: Fiscal deficit can be inflationaiy when we are at full employment level. It is so because large fiscal deficits creates excess money supply that creates inflation

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Giving reasons, state whether the statements are true or false:Fiscal deficit is non-inflationary.

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