Indian Economy
Fiscal deficit in the Union Budget means

net increase in Union Governments borrowings from the Reserve Bank of India
the sum of budgetary deficit and net increase in internal and external borrowings
the difference between current expenditure and current revenue
the sum of monetized deficit and budgetary deficit

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Indian Economy
Deficit financing leads to inflation in general, but it can be checked if

government expenditure leads to increase in the aggregate supply in ratio of aggregate demand
only aggregate demand is increased
All of the listed here
all the expenditure is denoted national debt payment only

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Indian Economy
If the RBI adopted an expansionist open market operations policy, this means that it will

buy securities from non-government holders
sell securities in the open market
openly announce to the market that it intends to expand credit
offer commercial banks more credit in the open market

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