Discussion

Explanation:

Deficit intensity = $\frac{Deficit}{Sales}=\frac{Import}{Sales}-\frac{Export}{Sales}$= Import Intensity - Export Intensity

​​​​​​​

Growth rate in 1994-95 = $\frac{6.3-5.1}{5.1}$×100 = 23.5%

Growth rate in 1995-96 = $\frac{7.6-6.3}{6.3}$×100 = 20.63%

Growth rate in 1996-97 = $\frac{8-7.6}{7.6}$ × 100 = 5.26%

Growth rate in 1997-98 = $\frac{5-8}{8}$ ×100 = -37.5%

we can conclude that deficit intensity is increasing between 1993-94 and 1996-97.

Hence, option (a).

» Your doubt will be displayed only after approval.