Economics · Fiscal Policy
The question consists of two statements, namely, Assertion (A) and Reason (R). Read the following statements and select the correct alternative. Assertion (A): Expenditure on interest payment is a capital expenditure. Reason (R): Interest payments neither create any assets nor cause a reduction in liabilities of the government.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A is true and R is false
- 2A is false but R is true✓
- 3Both A and R are true, and R is the correct explanation of A
- 4Both A and R are true, but R is not the correct explanation of A
Correct answer
A is false but R is true
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