Question

The goal of measuring ------- is to focus on present fiscal imbalances.
a)Revenue deficit
b)Fiscal deficit
c)primary deficit
d)None
​

Answer 1

Ans d)None

Explanation:

Obligations and income streams are measured at their respective present values and discounted at the risk-free rate plus a certain spread. If a government incurs a sustained fiscal imbalance, then tax burdens will likely increase in the future, causing current and future household consumption to fall.