Given below are two statements:
Statement I: A rising ratio of interest payments to GNP imposes a burden because taxation is needed to finance the interest payment and imposes a dead weight loss.
Statement II: A rising rate of interest payment in the budget tends to crowd out other public programs.
s, choose the correct answer from the options given below:
1
Both Statement I and Statement II are true.
2
Both Statement I and Statement II are false.
3
Statement I is true but Statement |l is false.
4
Statement I is false but Statement II is true.