Read the following statements carefully: Statement 1: The induced consumption shows, the direct relation between consumption and income. Statement 2: With a certain increase in income, induced consumption also increases. In the light of the given statements, choose the correct alternative from the following:

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KollegeApply · Accepted Answer

Both Statements 1 and 2 are true. Explanation: Induced consumption is the level of consumption that is determined by one's income. It is directly proportional to income. As income rises, so does induced consumption.

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