Which of the following statements about national debt are correct? (A) Deficit can be thought of as a flow variable which adds to the stock of debt (B) The government finances debt through taxation, borrowing or printing money (C) Debt owned to foreigners involves a higher burden than debt owned to domestic agents and institutions (D) Government's debt financing crowds out private borrowers in financial markets Choose the correct answer from the options given below:

Question

Option 1: (A), (B) and (D) only

Option 2: (A), (B) and (C) only

Option 3: (A), (B), (C) and (D)

Option 4: (B), (C) and (D) only

AfterBoards · Accepted Answer

The answer is '(A), (B) and (C) only'. View full solution:

List - I (Budgetary Terms)	List - II (Accounting Head)
(A) Interest Payments	(I) Revenue Receipts
(B) Grants-in-aid received	(II) Capital Expenditure
(C) Borrowings and other liabilities	(III) Revenue Expenditure
(D) Construction of flyover	(IV) Capital Receipts

CUET Economics 2025 31 May Shift 1 PYQs

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