Question

Consider the following statements about fiscal deficit: 1. Fiscal deficit is the difference between total revenue and total expenditure of the government, excluding borrowings. 2. A high fiscal deficit always leads to high inflation in the economy. 3. Fiscal deficit is a measure of the government's borrowing requirements. Which of the above statements are correct?

A 1 only
B 1 and 3 only
C 2 and 3 only
D 1, 2 and 3
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