Economics · Macroeconomics
Analyze the following Assertion (A) and Reason (R) and choose the correct option: Assertion (A): It is wrong to blame the economic policies of India alone for the unprecedented depreciation of the Indian rupee. The Indian rupee falls to record lows against the US Dollar owing to the increased demand for the US Dollar in the international market. Reason (R): During the pandemic, the US government provided fiscal stimulus to keep its economy on track, which paved the way for inflation. The US Federal Reserve responded by increasing interest rates, causing global investors to withdraw money from other economies and invest in the US to earn better returns.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both (A) and (R) are true and (R) is the correct explanation of (A).✓
- 2Both (A) and (R) are true but (R) is not the correct explanation of (A).
- 3(A) is true but (R) is false.
- 4(A) is false but (R) is true.
Correct answer
Both (A) and (R) are true and (R) is the correct explanation of (A).
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