CAT 2003 Slot 2 — VARC Question 7
Fill in the blanks in the passage with the most appropriate set of words from the options for each blank.
The argument that the need for a looser fiscal policy to _____ demand outweighs the need to _____ budget deficits is persuasive.
Answer & solution
- A
assess, minimize
- B
outstrip, eliminate
stimulate, control
- D
restrain, conceal
Something that outweighs (be more important than, balance or offset) budget deficits has to be ‘raising’ demand. A looser fiscal policy should thereby stimulate demand and not just assess (measure), outstrip (surpass) or less importantly, restrain (hold back) demand.
Although, for the second blank, minimize (option 1) also fits (control of option 3 fits as well), stimulate (3) is the best word for the first blank.
Hence the correct answer is option 3.