Question

Match List-I with List-II

List-I(Economic Concepts)		List-II(Description)
A	Kuznets Curve	I	Describes the relationship be tween currency depreciation and current account balance
B	Fisher Effect	II	Describes the relationship between autonomous investment and output
C	J Curve Effect	III	Describes the relationship between income and inequality
D	Multiplier Effect	IV	Describes the relationship between expected inflation rate and interest rate

Choose the correct answer from the options given below

• A. (A)- (I), (B)- (II), (C)- (III), (D)- (IV)
• B. (A)- (III), (B)- (II), (C)- (I), (D)- (IV)
• C. (A)- (I), (B)- (IV), (C)- (III), (D)- (II)
• D. (A)- (III), (B)- (IV), (C)- (I), (D)- (II)

Hint:

The Kuznets Curve and J Curve effects show how income inequality and the balance of trade respond to economic changes.

Answer 1

The Correct Option is D

The matching of economic theories and their corresponding effects is as follows:
(A) Kuznets Curve describes the relationship between income and inequality. 
(B) Fisher Effect describes the relationship between expected inflation rate and interest rate. 
(C) J Curve Effect describes the relationship between currency depreciation and current account balance. 
(D) Multiplier Effect describes the relationship between autonomous investment and output. 
Thus, the correct answer is (d)