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Government Budget and Economy — Economics STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEconomicsGovernment Budget and Economy1 Mark
Question
Assertion (A): Primary deficit = Fiscal deficit – Net interest liabilities
Reason (R): Net interest liabilities consist of interest payments minus interest receipts by the government on net domestic lending.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
✓

Answer

b) Explanation:- Reason does not explain fiscal deficit. It does explain net interest only.

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