Which one of the following is likely to be the most inflatio

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M: +2.00/-0.50

Which one of the following is likely to be the most inflationary in its effects?

I.A.S. (Pre) 2021 I.A.S. (Pre) 2013

[Fiscal Policy, Inflation Planning and Banking]

Repayment of public debt

Borrowing from the public to finance a budget deficit

Borrowing from the banks to finance a budget deficit

Creation of new money to finance a budget deficit

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