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