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Question : 3
Total: 52
Read the following statements carefully:
Statement 1: The induced consumption shows, the direct relation between consumption and income.
Statement 2 : With a certain increase in income, induced consumption also increases.
In the light of the given statements, choose the correct alternative from the following:
Statement 1: The induced consumption shows, the direct relation between consumption and income.
Statement 2 : With a certain increase in income, induced consumption also increases.
In the light of the given statements, choose the correct alternative from the following:
Solution:
Both Statements 1 and 2 are true.
Explanation: Induced consumption is that level of consumption which is dependent on level of income. It is directly related to income. As income increase, induced consumption also increases.
Explanation: Induced consumption is that level of consumption which is dependent on level of income. It is directly related to income. As income increase, induced consumption also increases.
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