You have to consider the statement and the following assumptions and decide which of the assumptions is implicit in the statement..
Statement:- The target of a fiscal deficit of 5% of GDP could not be met because of major short fall in revenue collection.
Assumptions:-
I. Shortfall in revenue collection leads to an increase in fiscal deficit.
II. Shortfall in revenue collection leads to a decrease in fiscal deficit.

Options

A. a. if only Assumption 1 is implicit
B. b.if only Assumption Il is implicit
C. c. if either I or II is implicit
D. d. if neither I nor II is implicit

Answer

A

Explanation

It is clear from the statement which is based on the assumption that short fall in revenue collection leads to an increase in fiscal deficit. So, only Assumption I is implicit.