| Assertion: the imports of sensitive goods can cause inflation. |
| Reason: Sensitive goods are the goods which are highly subsidized in the foreign countries. Choose the correct option: |
A) Assertion is correct and the reason explains the assertion.
B) Assertion and reason both are correct, but the reason is not the correct explanation.
C) Assertion correct but the reason is wrong
D) Both assertion and reason are incorrect
Correct Answer: D
Solution :
[d] Sensitive goods are those goods whose imports can ruin the domestic industry; it has no link to inflation, and they may be or may not be subsidized.
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