Question
Data Interpretation & Logical Reasoning (DILR) Question on Statements and Assumptions
In the following question, two statements numbered I and II are given. There may be cause and effect relationship between two statements. These two statements may be the effect of same cause or independent causes. These statements may be independent causes without having any relationship. Read both the statements and mark your answer accordingly.
Statement I: Inflation is the sustained increase in the general price level.
Statement II: Increase in money supply results in too much money chases too few goods.
Statement I is the cause and statement II is its effect
Statement II is the cause and statement I is its effect
Both statement I and statement II are independent causes
Both statement I and II are effect of independent causes
Statement II is the cause and statement I is its effect
Solution
The correct option is (B): Statement II is the cause and statement I is its effect