📝 Multiple Choice Question
Economics
The Primary Deficit is zero in which of the following situations?
A
When fiscal deficit is zero
B
When the government stops borrowing entirely
C
When revenue deficit is zero
D
When fiscal deficit is exactly equal to interest payments
Explanation
Since primary deficit equals fiscal deficit minus interest payments, it drops to zero when a government's total borrowing is used entirely and exclusively to pay interest on past debt.
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