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Statement The government has decided to disinvest large chunk of its equity in select public sector undertakings for a better fiscal management. Assumption I. The amount generated out of the disinvestment process may reduce substantially the mounting fiscal deficits. II. There will be enough demand in the market for the shares of these undertakings.

if only assumption I is implicit.
if only assumption II is implicit.
if either I or II is implicit.
if neither I nor II is implicit.

Correct Answer: if only assumption I is implicit.

Explanation:

The fact given in I directly follows from the phrase ' . . . . for a better fiscal management' in the statement. So, I is implicit. However, the public response to the new policy cannot be ascertained. So, II is not implicit.

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