Question:

The was that the cheaper the rate the better it is for the industry.

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Look for the rate whose fall directly lowers the cost of doing business, and a noun that names a piece of reasoning.
Updated On: Jul 21, 2026
  • hope ... tax
  • logic ... interest
  • assumption ... consumption
  • belief ... depreciation
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The Correct Option is B

Solution and Explanation

The first blank needs a noun for a line of reasoning, and the second needs a rate whose fall genuinely helps industry. Lower borrowing costs boost investment, so a cheaper interest rate is the standard driver of industrial growth, and the reasoning behind it is best called the logic.

  • logic ... interest is correct because "the logic was that" introduces a reasoned argument, and cheaper interest rates lower the cost of capital, which directly benefits industry.
  • hope ... tax is wrong because "the hope was that" is weaker than a stated argument, and while a lower tax rate helps, the pairing reads less naturally.
  • assumption ... consumption is wrong because a "consumption rate" is not a standard lever, and being cheaper does not clearly help industry.
  • belief ... depreciation is wrong because a cheaper "depreciation rate" is not a recognised benefit to industry and the phrase does not fit.

So the correct word-pair is logic and interest.

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