Statement : Government has made home loans cheaper.
Assumption I : More people are likely to take home loans.
Assumption II : Price of houses will come down.

The correct answer is (A) Only assumption I is implicit.

• Logical Principle: An assumption is a premise that must be true for the stated action to achieve its purpose or for the statement to hold logical validity. In economics, lowering interest rates (making loans cheaper) is a policy tool intended to stimulate demand.
• Step-by-step Deduction: Assumption I is implicit because the primary objective of reducing loan costs is to increase affordability and encourage potential buyers to take loans. Assumption II is not necessarily implicit because house prices are determined by multiple factors like land costs, construction material prices, and market demand; lowering interest rates could, in some cases, increase demand and keep prices stable or even cause them to rise.
• Verification: Since Assumption I directly aligns with the intent behind the government's action, it is valid. Assumption II is a potential consequence but not a necessary premise underlying the policy decision, rendering options (B), (C), and (D) incorrect.