Assertion (A): The fiscal deficit shows how much the government needs to borrow.
Reason (R): It is total spending minus all receipts that do not create debt.

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

What is left after non-debt receipts can only come from borrowing. R explains A.

Concept: What the fiscal deficit measures
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The rule this testsFiscal deficit

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Ten questions from Budget Deficits, at your own pace.

Assertion (A): The fiscal deficit shows how much the government needs to borrow.Reason (R): It is total spending minus all receipts that do not create debt.

Explanation

Assertion (A): The fiscal deficit shows how much the government needs to borrow.
Reason (R): It is total spending minus all receipts that do not create debt.