Solve clearly

7. Which of the following is a development that can occur as a result of deficit financing? * The improvement in money supply in the Indian economy The rise in inflation within the Indian economy All of the answers The increase in government debt8. Assume the recessionary gap in two countries = 10 million Euros. The governments decide to fight the recession by increasing their spending. The following tables illustrate the result. Which country has the highest crowding out? * Country I Country II Variable After The fiscal Policy After The fiscal Policy C Decreases By 70% Decreases By 20% H Decreases By 80% Decreases By 10% Country I Both countries I and Il Country II None of these