Statement: Let us increase the taxes to cover the deficit. Assumptions: The present taxes are very low. Deficit in a budget is not desirable. If the taxes are not increased, the deficit cannot be met.

Only I and II are implicit
Only II and III are implicit
Only I and III are implicit
All are implicit
None of these

Correct Answer: Only II and III are implicit

Explanation:

Clearly, the statement shows that the present taxes are not sufficient to meet the deficit but they may still be high. So, I is not implicit. Since the statement talks of covering the deficit, so II is implicit. Also, the taxes are increased to meet the deficit. So, III is also implicit.

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