Assertion (A): A high revenue deficit is a warning sign for the government's finances.
Reason (R): It means the government is borrowing to meet expenses that create no assets.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Debt grows without assets that could yield the income to repay it. R explains A.

Concept: Why revenue deficits worry
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsRevenue deficit

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Ten questions from Budget Deficits, at your own pace.

Assertion (A): A high revenue deficit is a warning sign for the government's finances.Reason (R): It means the government is borrowing to meet expenses that create no assets.

Explanation

Assertion (A): A high revenue deficit is a warning sign for the government's finances.
Reason (R): It means the government is borrowing to meet expenses that create no assets.