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Commerce · Q221

Business Environment and International Business

Graduate and Post Graduate · Commerce · question 221

Q221

Consider the following statements. Statement I: During the period of prosperity changes in incomes of the people and prices of goods affect exports and imports of goods and thereby influence the balance of payments. Statement II: Cyclical disequilibrium is caused by the fluctuations in the economic activity or what are known as trade cycles.

A.
Statement I is correct, but II is incorrect
B.
Statement II is correct, but I is incorrect
C.
Both the statements I and II are correct
Answer
D.
Both the statements I and II are incorrect

Answer: Option C

Solution

Answer: Option C
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