Economics · Fiscal Policy
Consider the following statements: Assertion (A): Price policy aims directly at controlling the fiscal deficit. Reason (R): A high fiscal deficit leads to inflationary pressures in the economy. Select the correct answer from the following options:
- 1(A) and (R) are correct and (R) is the correct explanation of (A)
- 2Both (A) and (R) are wrong
- 3(A) is wrong but (R) is correct✓
- 4(A) is correct but (R) is wrong
Correct answer
(A) is wrong but (R) is correct
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