Direction: The sentences given in each question, when properly sequenced, form a coherent paragraph. Each sentence is labelled with a letter. Choose the most logical order of the sentences from amongst the given choices so as to form a coherent paragraph.
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A. ‘It’s a tricky business’, says Allan H. Meltzer, an economist at Carnegie mellon University and a former economic adviser to President Reagan.
B. Some policy- makers are focused on staving off the opposite problem- deflation, or falling prices, as demand weakens to the point that goods pile up without buyers, sending prices down and reducing the incentive for businesses to invest.
C. That could shrink demand further and perhaps even deliver the sort of downward spiral that pinned Japan in the weeds of stagnant growth during the 1990s.
D. “There’s no math model that tells us when to do it or how.”
E. But that, as most economists see it, is a worry for another day.
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- A B C E D
- A C D E B
- B C D E A
- A D E B C
Correct Option: D
We follow paragraph formation as :-
Clearly A has to be followed by D as D completes what Allan H. Meltzer was mentioning in A. Also B has to be followed by C as ‘that could shrink demand further’ is the result of what is happening in B.Thus , required sequence is A D E B C .
