Consider the following statements.
Assertion (A): The import volume tends to be very high when there is simultaneous high eco-nomic growth rate 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.
A. Both (A) and (R) are correct and (R) is the right explanation of (A)
B. Both (A) and (R) are correct but (R) is not the right explanation of (A)
C. (A) is correct but (R) is not correct
D. (R) is correct but (A) is not correct
Answer: Option A
This Question Belongs to Commerce >> Business Environment And International Business
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