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.

1
Both (A) and (R) are correct and (R) is the right explanation of (A).
2
Both (A) and (R) are correct but (R) is not the right explanation of (A).
3
(A) is correct but (R) is not correct.
4
(R) is correct but (A) is not correct.

Sponsored

hivanix.in

Visit

This quiz is brought to you by hivanix.in

🌐 Web App Development

Quick Navigation