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Problem 3 - Olympiad

Statement 1: The national government announced lower interest rates in the budget. Statement 2: Construction activities in the country increased by 30% within six months. How are these connected?

Correct: A

Lower interest rates incentivize borrowing for construction projects, directly leading to an increase in construction activities. This is a direct cause-effect relationship. Option B is reversed. Options C and D are incorrect as the connection is direct.