Fiscal deficit was 4% of the GDP in 2015 and that increased

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Fiscal deficit was 4% of the GDP in 2015 and that increased to 5% in 2016. If the GDP increased by 10% from 2015 to 2016, the percentage increase in the actual fiscal deficit is

1. 25.00
2. 37.50
3. 35.70
4. 10.00

Correct Option: B

Let GDP in 2015 be x
Now, in 2016, GDP will be 1.
1x Fiscal deficit in 2015 = 0.04 × x
Fiscal deficit in 2016 = 0.05 × 1.1 x
Here percentage increase in the actual fiscal deficit

=			0.05 × 1.1x - 0.04 × x			× 100 = 37.5%
			0.04x