Question
Which of the following is/are the major Objectives of Deficit financing?
- Used as an instrument of economic policy
- It is used as a tool for meeting financial needs of government
- Used for the mobilization of surplus, non- utilized and idle resources in the economy
Answer: Option D
Answer: (d)
In under-developed countries, deficit-financing has been considered essential for financing the plans of economic development. It is used as a tool for meeting the financial needs of the government, especially in times of war.
It is used for the mobilization of surplus, non-utilized and idle resources in the economy. It is also used as an instrument of economic policy for removing the conditions of depression 4 to raise the level of output and employment.
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Answer: (d)
In under-developed countries, deficit-financing has been considered essential for financing the plans of economic development. It is used as a tool for meeting the financial needs of the government, especially in times of war.
It is used for the mobilization of surplus, non-utilized and idle resources in the economy. It is also used as an instrument of economic policy for removing the conditions of depression 4 to raise the level of output and employment.
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