WBCS.LIVE practice question

Identify the correct statement/s regarding budgetary deficit? i. Deficit acts as a flow that adds to the stock of the debt. ii. Deficit acts as stock, which is independent of debt. iii. Deficit acts as a burden on the future generation.

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Only ii
  2. Only i and ii
  3. Only i
  4. Only i and iii

Correct answer and explanation

Correct answer: Only i and iii