1.

Assertion (A) : The volume of imports tends to be very high when there is a conjecture of high rate of economic growth and a sharp fall in the relative price of imports and vice versa. Reason(R) : High rate of growth, ceteris paribus, is associated with rise in imports and increase in the imports, ceteris paribus, is associated with a fall in the relative price of imports.

A. Both (A) and (R) are correct and (R) is the right explanation of (A).
B. Both (A) and (R) are correct but (R) is not the right explanation of (A).
C. (A) is correct but (R) is not correct.
D. (R) is correct but (A) is not correct.
Answer» B. Both (A) and (R) are correct but (R) is not the right explanation of (A).


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