Question

Identify the right combinations of items from Column 1 and Column 2.

Column 1	Column 2
(1) Investment multiplier	(a) `C/Y`
(2) Average propensity to save	(b) `(Delta S)/(Delta Y)`
(3) Marginal propensity to save	(C) `S/Y`
(4) Average propensity to consume	(d) `1/(1 - C)`

Answer 1

Column 1	Column 2
(1) Investment multiplier	(d) `1/(1 - C)`
(2) Average propensity to save	(C) `S/Y`
(3) Marginal propensity to save	(b) `(Delta S)/(Delta Y)`
(4) Average propensity to consume	(a) `C/Y`