A statement is given followed by two assumptions numbered I and II. You have to assume everything in the statement to be true and decide which of the assumptions is/are implicit in the statement.
Statement: Increase in the tax rates will hurt the pockets of the salaried middle class.
Assumptions: I. Increase in the prices of goods will hurt the poor too.
II. The middle class will reduce their extra expenditure to save money.

Correct option is D

To decide whether an assumption is implicit:
The assumption must be directly related to the statement.
It must be necessary for the statement to hold true.
Analysis:
Assumption I:Increase in the prices of goods will hurt the poor too.
This assumption shifts focus from the middle class (mentioned in the statement) to the poor, which is not directly implied. The statement talks specifically about tax rates affecting the middle class and not the poor.
Assumption II:The middle class will reduce their extra expenditure to save money.
This assumption is directly tied to the statement since if tax rates hurt the middle-class pocket, it may lead to cost-cutting behavior such as reducing extra expenditure. Hence, it is implicit.
Thus, only Assumption II is implicit.