The decline in the value of rupee last year was caused by rumours of tapering of the fiscal stimulus by the Federal Reserve Bank of the United States. But those rumours would not have adversely affected the rupee if not for the government’s huge fiscal deficit, which must therefore be brought down to prevent future decline in the value of rupee.

Which of the following, if true, would most seriously weaken the conclusion about how to prevent future declines in the value of rupee?

The government has made no attempts to reduce the fiscal deficit.

A huge fiscal deficit has not resulted in a slowdown in economic growth.

The value of rupee declined several times last year prior to the most recent decline caused by the rumours of the tapering of fiscal stimulus.

Before the fiscal deficit reached unmanageable proportions, rumours of various kinds frequently caused declines in the value of rupee.

When the fiscal deficit reaches unmanageable proportions, other events in addition to rumours sometimes cause declines in the value of a currency.