Economics · Macroeconomics
Given below are an Assertion (A) and a Reason (R). Select the correct option: Assertion (A): It is incorrect to solely blame the domestic economic policies of India for the depreciation of the Indian rupee against the US Dollar. Reason (R): Post-pandemic fiscal stimulus in the US led to inflation, prompting the US Federal Reserve to raise interest rates. This caused global investors to withdraw capital from emerging markets and invest in the US to seek higher yields.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(A) is false but (R) is true.
- 2(A) is true but (R) is false.
- 3Both (A) and (R) are true but (R) is not the correct explanation of (A).
- 4Both (A) and (R) are true and (R) is the correct explanation of (A).✓
Correct answer
Both (A) and (R) are true and (R) is the correct explanation of (A).
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