Which of the following is correctly matc

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

Which of the following is correctly matched?

1.	Propensity to consume	A.	Zero
2.	MPC + MPS	B.	1
3.	Aggregate demand	C.	Ratio of consumption to income
4.	Inflation	D.	Consumption is zero

Options:

1 - A

2 - B

3 - C

4 - D

Correct Answer:

2 - B

Explanation:

The sum of marginal propensity to save and marginal propensity to consume is 1

i.e. MPS + MPC = 1