A zero primary deficit means that

the government borrows only to pay interest on its past debtCorrect answerYour answerthe government does not borrow at allCorrect answerYour answerthe revenue deficit is zeroCorrect answerYour answerthere are no interest paymentsCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

PD = FD − interest = 0, so FD = interest payments.
All borrowing goes to pay interest; current policies are fully paid for by current receipts.

Concept: Zero primary deficit
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The rule this testsPrimary deficit

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A zero primary deficit means that

Explanation