MCQOPTIONS
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| 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). | |