Assertion (A): Interest paid by government on public debt is not included in the interest income
Assertion (A): Interest paid by government on public debt is not included in the interest income.
Reason (R): Interest paid on loans taken for consumption purposes is not included as factor income.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Anurag Pathak Changed status to publish December 10, 2023
Ans – (a)
Explanation:-
Assertion (A) is true as interest paid by government on public debt is not included as public debt is used for consumption purposes.
Reason (R) is true as interest paid on loans taken for consumption purposes is not included as factor income as it does not add to the current flow of goods and services.
Reason (R) is the correct explanation of Assertion (A).
Anurag Pathak Changed status to publish December 10, 2023
