Deficit financing tends to change the mix of output in the direction of more
A)Private sector goods.
B)International sector goods.
C)Business sector goods.
D)Public sector goods.

Question

Quizplus · Accepted Answer

Deficit financing involves borrowing money to fund government expenditures, which typically results in increased spending on public sector goods and services. This can include infrastructure projects, social welfare programs, and military spending. Therefore, deficit financing tends to shift the mix of output towards more public sector goods.

Deficit Financing Tends to Change the Mix of Output in the Direction