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0. Assertion (A) : The fall in aggregate expenditure or aggregate demand in the economy works to reduce imports and help in solving the balance of payment problems.Reasoning (R) : The important way to reduce imports and thereby reduce deficit in balance of payments is to adopt monetary and fiscal policies that aim at reducing aggregate expenditure in the economy.
Both (A) and (R) are correct and (R) supports (A).
Both (A) and (R) are correct, but (R) does not support (A).
(A) is correct, but (R) is incorrect.
(R) is correct, but (A) is incorrect.
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