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      Question

      Consider the following: Assertion (A): According

      to Peacock-Wiseman hypothesis, public expenditure increases overtime in a step-by-step manner. Reason (R): This hypothesis is based on the displacement effect, concentration effect and inspection effect. Select the correct answer from the codes given below: Codes:
      A (A) is true, but (R) is false Correct Answer Incorrect Answer
      B (A) is false, but (R) is true Correct Answer Incorrect Answer
      C Both (A) and (R) are true, but (R) is not the correct explanation of (A). Correct Answer Incorrect Answer
      D Both (A) and (R) are true and (R) is the correct explanation of (A). Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Both (A) and (R) are true and (R) is the correct explanation of (A).

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