Question

In the following question statement is followed by some assumptions are given. An assumption is something supposed or taken for granted. You have to consider the statement and decide which of the assumptions is implicit in the statement ? Choose the most appropriate answer.
Statement : The target of a fiscal deficit of 5% of GDP could not be met, because of a major shortfall in revenue collections.
Assumptions :
1. Shortfall in revenue collections lead to an increase in fiscal deficit.
2. Shortfall in revenue collections lead to a decrease in fiscal deficit.

• A. If only assumption I is implicit.
• B. If only assumption II is implicit.
• C. If neither assumption I nor II is implicit.
• D. If both assumptions I and II are implicit.

Answer 1

Answer: (A)

If only assumption I is implicit.

Answer 2

The correct option is (A) : If only assumption I is implicit..