Question : Which of the following statement are true?
- Equilibrium occurs when ex-ante savings is equal to ex-post savings.
- When income rises, APC falls but at a rate less than that of MPC.
Option 1: Both are true.
Option 2: Both are false.
Option 3: Statement 1 is true, statement 2 is false.
Option 4: Statement 1 is false, statement 2 is true.
Answer (1)
12th Jan, 2024
Correct Answer: Statement 1 is false, statement 2 is true.
Solution :
Equilibrium occurs when ex-ante savings is equal to ex-ante investment.
When income rises, APC falls but at a rate less than that of MPC.
Hence, Option D is correct.
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