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NTA-UGC-NET & SET Exams

Practice

Macroeconomics

National Income Concepts

Quick practice

Question 1 of 4

Assertion (A): As per the Ricardo-Barro theory, the government tries to stimulate the economy by increasing its expenditures which will lead to increased savings while demand remains unchanged.

Reason (R): This theory is based on an assumption that there is no existence of a perfect capital market.

A

(A) is true but (R) is false

B

(A) is false but (R) is true

C

(A) and (R) are true and (R) is the correct explanation of (A)

D

(A) and (R) are true but (R) is not the correct explanation of (A)

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