Match the following:

Column A	Column B
1. Marginal Efficiency of Capital	A. Spending on consumer goods.
2. Autonomous Investment	B. Tendency for employment to fluctuate
3. Consumption Function	C. Expected Rate of return on investment
4. Paradox of Thrift	D. Investment Independent of income
5. Cyclical Unemployment	E. Increased saving reduces total demand

Correct option is A

​Correct option: (a), 1 - C, 2 - D, 3 - A, 4 - E, 5 - B

Matching:

1. Marginal Efficiency of Capital → C. Expected Rate of return on investment 

• Explanation: The Marginal Efficiency of Capital refers to the expected rate of return on an additional unit of investment.
  

2. Autonomous Investment → D. Investment Independent of income

• Explanation​: Autonomous investment is the level of investment that occurs regardless of the level of income or output in the economy.

3. Consumption Function → A. Spending on consumer goods

Explanation: The consumption function shows the relationship between total consumption and total income, which represents spending on consumer goods.

4. Paradox of Thrift → E. Increased saving reduces total demand

• Explanation: The Paradox of Thrift suggests that while increased saving is beneficial for individuals, if everyone saves more, it can lead to reduced aggregate demand and a decrease in overall economic activity.
  

5. Cyclical Unemployment → B. Tendency for employment to fluctuate 

• Explanation: Cyclical unemployment occurs due to economic downturns or recessions, where employment fluctuates as the economy contracts and expands.