(a) Borrowing money for consumption does not generate returns to repay the loan. These 'consumption' loans are disliked by the WB (World Bank) and the IMF (International Monetary Fund) that normally ask for lifting of consumption subsidies as a required economic reform for issuance of the loans. Such reforms have many times led to social unrest termed the bread riots.

Bread is staple diet in many countries; and the lifting of subsidies on cost of bread tend to lead to people not being able to afford the staple diet. Appraise what would be the impact of lifting of subsidy on diesel. Briefly examine and explain some of the effects. Provide relevant example.