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In which of the following situation the primary deficit of Government Budget tends to be zero?

Since \(\text{Primary Deficit} = \text{Fiscal Deficit} - \text{Interest Payments}\), the primary deficit equals zero when the Fiscal Deficit is exactly equal to the Interest…

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In which of the following situation the primary deficit of Government Budget tends to be zero?

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Correct answer D

Since Primary Deficit=Fiscal Deficit−Interest Payments\text{Primary Deficit} = \text{Fiscal Deficit} - \text{Interest Payments}, the primary deficit equals zero when the Fiscal Deficit is exactly equal to the Interest Payment.

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  • RPSC Senior Teacher (Sanskrit Education)

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