Assertion (A): The primary deficit shows the borrowing needed for the current year's policies.
Reason (R): It leaves out interest payments, which arise from borrowing in past years.

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

Removing the cost of past debt isolates this year's own shortfall. R explains A.

Concept: Why the primary deficit matters
Typical timeTypical: 70 s
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The rule this testsPrimary deficit

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Ten questions from Budget Deficits, at your own pace.

Assertion (A): The primary deficit shows the borrowing needed for the current year's policies.Reason (R): It leaves out interest payments, which arise from borrowing in past years.

Explanation

Assertion (A): The primary deficit shows the borrowing needed for the current year's policies.
Reason (R): It leaves out interest payments, which arise from borrowing in past years.