Statement 1 : Just as taxes reduce the ability to save, public expenditure increase the ability to save.
Statement 2 : Ability to invest will be increased if public authority places investible funds in the hands of any agency, public or private.
In reference to the two statements given above choose the most appropriate answer from the following options :
1
Statement 1 is correct and Statement 2 is incorrect
2
Statement 1 is incorrect and Statement 2 is correct
3
Statement 1 is incorrect and Statement 2 is incorrect
4
Statement 1 is correct and Statement 2 is correct