Question
In the question below, two statements (I) and (II) are
given. 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 statement. Read both the statements and decide which of the following answer choices correctly depicts the relationship between these two statements. Question: I. The government has announced significant tax rebates and subsidies for companies investing in renewable energy projects. II. Several multinational corporations have recently begun large-scale investments in solar and wind power plants within the country.Solution
Statement I describes a policy decision by the government offering incentives for renewable energy. Statement II shows a response by corporations investing in renewable projects — a likely result of the incentives.
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