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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

      Solution

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

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