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Syllabus: Pre/Mains – International Relations
Saudi Arabia and Pakistan signed a “Strategic Mutual Defense Agreement” on 17 September 2025 under which both commit to treat “any aggression against either country” as aggression against both.


Q1. Consider the following about mutual defence agreements:
Which of the above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Hint: SEATO’s clause was weaker, no automatic military obligation.
CPI inflation (Aug 2025) at 2.07%, WPI at 0.52% → boon for consumers, strain on govt finances & Budget math.

Q2. Consider the following statements:
Which of the above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Hint: Real vs Nominal → adjustment; Fiscal ratios use Nominal; Low inflation reduces tax buoyancy.
Q3. Assertion (A): Low CPI and WPI inflation are good for consumers but may pose a challenge for government finances.
Reason (R): Fiscal deficit and debt ratios are measured against nominal GDP, which slows down when inflation is subdued.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.
Hint: Low inflation ↓ nominal GDP → weaker tax revenues & fiscal ratios.
