Practicing Success
Which of the following statements is true? Statement 1- Ex-ante savings refers to the amount of savings which is planned to be saved at different levels in an economy. Statement 2- Break even point refers to the point at which consumption is equal to the marginal propensity to consume. |
Only statement 1 is true Only statement 2 is true Both statement 1 and statement 2 are true Neither statement 1 nor statement 2 is true |
Only statement 1 is true |
Break-even point refers to the point at which consumption is equal to income i.e. savings are zero. |