Practicing Success
Practicing Success
CUET Preparation Today
In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options. Assertion (A)- Private consumption expenditure refers to the total expenditure incurred by the households on the purchase of goods and services during a given period of time. Reason (R)- There is negative relationship between income and consumption. As income rises, consumption decreases due to paradox of thrift. |
Both (A) and (R) are true and (R) is the correct explanation. Both (A) and (R) are true but (R) is not the correct explanation of (A). (A) Is true but (R) is false. (A) Is false but (R) is true. |
(A) Is true but (R) is false. |
There is a positive relationship between income and consumption. As income rises, consumption also rises. The marginal propensity to consume decides what portion of the income will be consumed and what would be saved. |
