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Question
Define 'or' explain the following concept.
Propensity to save
Solution
The propensity to save depends upon the level of income. This is because a person can save more if his income increases. When level of income increases more than minimum required level of consumption and expenditure, a person will not spend more on consumption therefore his ability and desire to save more will increase.
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Marginal propensity to consume + marginal propensity to save ......................... '
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Match the following Group ‘A’ with Group ‘B’:
| Group ‘A’ | Group ‘B’ | ||
| (a) | Giffen’s goods | (1) | Uses of commodities |
| (b) | Essential commodities | (2) | Keynes |
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| (d) | Consumption function | (4) | Inferior goods |
| (e) | Accept deposits | (5) | Money lender |
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(6) | Inelastic demand | |
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(7) | Luxurious commodities |
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(8) | Dr. Marshall |
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