Question

Assertion (A). MPC is the slope of consumption function. It measures the rate of change consumption per unit change in income. Its value ranges between 0 and 1 i.e., 0 <b<1

Reason (R). According to Keynes, "Men are disposed, as a rule and on an average, to increase

the consumption as their income increases, but not as much as increase in their income". It

means that as income rises, propensity to consume also rises, but by less than an increase in

income as people tend to save more as well.

Alternatives:

(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 and Reason (R) is not the correct explanation

of A.

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.​

Answer 1

Answer:

D

Explanation:

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