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    Question

    Statements: 1.The government reduced the

    interest rates on home loans. 2. There has been a significant rise in the purchase of new houses. Below in each of the questions are given two statements I and II. These statements may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statements. Read both the statements and decide which of the following answer choices correctly depicts the relationship between these two statements.
    A Statement 1 is the cause, and statement 2 is its effect. Correct Answer Incorrect Answer
    B Statement 2 is the cause, and statement 1 is its effect. Correct Answer Incorrect Answer
    C Both statements 1 and 2 are independent causes. Correct Answer Incorrect Answer
    D Both statements 1 and 2 are effects of a common cause. Correct Answer Incorrect Answer

    Solution

    Statement 1 indicates a reduction in interest rates, which likely led to the increased affordability and subsequent rise in home purchases, as stated in Statement 2.

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