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Match the LIST-I with LIST-II

LIST-I (Income related Aggregates)LIST-II (Computation)
A. SavingI. Consumption plus investment
B. Aggregate DemandII. Income minus consumption
C. Marginal Propensity to consumeIII. 1 / 1 - MPC
D. Investment multiplierIV. Change in consumption / Change in Income

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

Saving is income minus consumption, S=Y−CS = Y - C (A-II). Aggregate demand in a two-sector economy is consumption plus investment (B-I). MPC is change in consumption divided by change in income (C-IV). The investment multiplier is 11−MPC\frac{1}{1-MPC} (D-III).

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