2022 · Q37
Who among the following, first mooted the idea of deficit financing?
General KnowledgeIndian Economy
- AAdam Smith
- BAlfred Marshall
- CJohn Maynard Keynes
- DMilton Friedman
Explanation
John Maynard Keynes, in The General Theory of Employment, Interest and Money (1936), advocated deficit financing — the government spending beyond its revenue during a depression to revive demand. The idea is therefore credited to Keynes.