Below are two statements, one labeled as Assertion (A) and the other as Reason (R).
Assertion (A): Marginal Efficiency of Capital (MEC) curve shows investment levels at different interest rates.
Reason (R): Technological innovation, which increases the productivity of Capital shifts the MEC curve to the left.
In the context of the above statements, which of the following is true?
1
Both (A) and (R) are correct, and (R) is the correct explanation of (A)
2
Both (A) and (R) are correct, but (R) is not correct explanation of (A)
3
(A) is correct, but (R) is not correct
4
(A) is not correct, but (R) is correct