pyq/2024/csat/4

Based on the above passage, the following assumptions have been made:

1. Fiscal policies of governments are solely responsible for higher prices.

2. Higher prices do not affect the long-term government bonds.

Which of the assumptions given above is/are valid?

(A) 1 only

(B) 2 only

(C) Both 1 and 2

(D) Neither 1 nor 2