Assertion (A) : Investment has a demand effect. Reason (R): Investment augments the productivity and income in the economy. Codes: Options: A . &nbsp(A) is correct, but (R) is incorrect. B . &nbspBoth (A) and (R) are correct, and (R) is the correct explanation of (A). C . &nbspBoth (A) and (R) are correct, but (R) is not the correct explanation of (A). D . &nbsp(A) is incorrect, but (R) is correct.

Assertion (A) :Investment has a demand effect. Reason (R):Investment augments

Question

Assertion (A) :
Investment has a demand effect.
Reason (R):
Investment augments the productivity and income in the economy.
Codes:

Options:

A . (A) is correct, but (R) is incorrect.

B . Both (A) and (R) are correct, and (R) is the correct explanation of (A).

C . Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

D . (A) is incorrect, but (R) is correct.

Answer: Option B
Answer: (b)
Investment in capital and labour will increase productivity and production which will cause either rise in wages or the creation of employment or both thus the overall income will rise.

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