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Read the following statements carefully: Statement 1 : MarginalPropensity to Consume (MPC) exhibits the consumption per unit ofincome. Statement 2: As the national income of a country rises, theproportionate increase in the consumption is always more than theincrease in the income. In the light of the given statements,choose the correct option from the following : (A) Statement 1 istrue and Statement 2 is false. (B) Statement 1 is false andStatement 2 is true. (C) Both Statements 1 and 2 are true. (D) BothStatements 1 and 2 are false. Production of diverse varieties ofcrops, rather than one specialised crop, is known asdiversification of (Choose the correct option to fill in the blank)(A) Crops (B) Agricultural Production (C) Sectoral Composition (D)Employment Read the following statements carefully Statement 1 :During deflationary gap, the Central Bank of a country may increasethe repo rate. Statement 2: The government can reduce thedeflationary gap by purchasing Government Securities (G-Sec) in theopen market. In the light of the given statements, choose thecorrect option from the following : (A) 1 Statement 1 is true andStatement 2 is false. (B) Statement 1 is false and Statement 2 istrue. (C) Both Statements 1 and 2 are true. (D) Both Statements 1and 2 are false.

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