Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

In order to arrive Gross Primary Deficit what should be deducted from Gross Fiscal deficit?

Options:

Borrowing from abroad.

Net factor income from abroad

Net Interest liabilities.

Transfers payments

Correct Answer:

Net Interest liabilities.

Explanation:

The correct answer is Option (3) → Net Interest liabilities.

Gross primary deficit = Gross fiscal deficit – Net interest liabilities