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0. Assertion (A). In case of a flexible exchange rate, the Government is free from the consideration of Balance of Payment, and the Government can concentrate on domestic economic policy. Reason (R). The automatic adjustment balance of payment is achieved in case of a free exchange rate through changes in exchange rates.
If both A and R are true and R is the correct explanation of A.
If both A and R are true but R is Not the correct explanation of A
If A is true but R is false
If A is false but R is true
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