Statement : Government has made home loans cheaper.
Assumption I : More people are likely to take home loans.
Assumption II : Price of houses will come down.
MPPSC State Service - 2022, MPPSC Forest Service - 2022,
Answer: A
Only assumption I is implicit.
A government makes loans cheaper to encourage borrowing, so the decision assumes that cheaper home loans will lead more people to take them. That is assumption I.
Assumption II does not follow. Cheaper loans increase demand for houses, which tends to push prices up rather than down, and in any case the statement says nothing about house prices. So the options with II implicit are wrong.
Please log in or register to report this question.