Question

Match List-I with List-II:

List-I	List-II
(A) Average propensity to save	(I) Inversely related to the investment multiplier
(B) Average propensity to consume	(II) Ratio of change in consumption to change in income
(C) Marginal propensity to save	(III) Always less than one
(D) Marginal propensity to consume	(IV) Can’t be zero

Choose the correct answer from the options given below:

• A. (A)-(I), (B)-(II), (C)-(III), (D)-(IV)
• B. (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
• C. (A)-(I), (B)-(III), (C)-(IV), (D)-(II)
• D. (A)-(III), (B)-(II), (C)-(IV), (D)-(I)

Answer 1

Answer: (A)

(A)-(I), (B)-(II), (C)-(III), (D)-(IV)

Answer 2

APS is inversely related to the investment multiplier, and MPC cannot be zero.