A statement is given followed by two assumptions numbered I and II. You have to assume everything in the statement to be true and decide which of the assumptions is/are implicit in the statement.
Statement:
Increase in the tax rates will hurt the pockets of the salaried middle class.
Assumptions:
I. Increase in the prices of goods will hurt the poor too.
II. The middle class will reduce their extra expenditure to save money.
1
Neither assumption I nor II is implicit
2
Only assumption I is implicit
3
Both assumptions I and II are implicit
4
Only assumption II is implicit