CBSE 2025, Set 1

Question

Read the following statements: Assertion (A) and Reason (R). Choose one of the correct options given below:

**Assertion (A):** If the value of Marginal Propensity to Save is 0.5, Marginal Propensity to Consume will be equal to Marginal Propensity to Save.
**Reason (R):** Sum of Marginal Propensity to Consume and Marginal Propensity to Save always equals to unity. A). Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). B). Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). C). Assertion (A) is true, but Reason (R) is false. D). Assertion (A) is false, but Reason (R) is true.

Edvaya · Accepted Answer

The correct answer is Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).. (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

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Economics > Introductory Macroeconomics > Determination Of Income Employment

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