Match List-I with List-II
|
List-I |
List-II |
|
(A) Marginal Propensity to Consume |
(I) C/Y |
|
(B) Marginal Propensity to Save |
(II) ΔC/ ΔY |
|
(C) Average Propensity to Save |
(III) S/Y |
|
(D) Average Propensity to Consume |
(IV) ΔS/ΔY |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A)-(II), (B)-(IV), (C)-(III), (D)-(I)
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(A) Marginal Propensity to Consume (MPC) → (II) ΔC / ΔY. It measures the change in consumption resulting from a change in income.
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(B) Marginal Propensity to Save (MPS) → (IV) ΔS / ΔY. It measures the change in saving resulting from a change in income.
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(C) Average Propensity to Save (APS) → (III) S / Y. It shows the proportion of income that is saved.
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(D) Average Propensity to Consume (APC) → (I) C / Y. It shows the proportion of income that is consumed.