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
✓ Correct answer: D
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