Given below are two statements: one is labelled as Assertion(A) and the other is labelled as Reason(R)
Assertion (A): The marginal propensity to consume and the value of the investment multiplier are inversely correlated.
Reason (R): Saving causes leakage in the income cycle. More savings result in more leakage and a lower investment multiplier value.
In the light of the above statements, choose the most appropriate answer from the options given below:
1
Both Assertion and Reason are true, and Reason (R) is the correct explanation of Assertion (A)
2
Both Assertion and Reason are true, and Reason (R) is not the correct explanation of Assertion (A)
3
Assertion (A) is True, but Reason (R) is False
4
Assertion (A) is False, but Reason (R) is True