Which of the following statements is true?
Statement 1- MPC of a developed country is more than the MPC of developing country.
Statement 2- Developed country needs to spend more on basic needs than the developing country.
Answer & explanation
Correct answer: option 4
MPC of a developing countries is more than MPC of a developed country as developing countries needs to spend more on the basic needs than the developed countries. It is also said that MPC of poor is more than MPC of rich, as poor person needs to spend more on basic necessities.