Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:
Assertion : Disequilibrium results when net balance of BOP is positive or negative.
Reason : Disequilibrium is caused by economic, political and social factors.
Options:
Both assertion and reason are true and reason is the correct explanation
Both assertion and reason are true and reason is the not correct explanation
Assertion is true but reason is false
Assertion is false but reason is true
Correct Answer:
Both assertion and reason are true and reason is the not correct explanation
Explanation:
Disequilibrium is caused due to deficit or surplus BOP which can be due to any reason political, economical or social.