Question:medium

Match List-I with List-II

List-I(Economic Concepts)

List-II(Description)

AKuznets CurveIDescribes the relationship be tween currency depreciation and current account balance
BFisher EffectIIDescribes the relationship between autonomous investment and output
CJ Curve EffectIIIDescribes the relationship between income and inequality
DMultiplier EffectIVDescribes the relationship between expected inflation rate and interest rate

Choose the correct answer from the options given below

Show Hint

The Kuznets Curve and J Curve effects show how income inequality and the balance of trade respond to economic changes.
Updated On: Feb 11, 2026
  • (A)- (I), (B)- (II), (C)- (III), (D)- (IV)
  • (A)- (III), (B)- (II), (C)- (I), (D)- (IV)
  • (A)- (I), (B)- (IV), (C)- (III), (D)- (II)
  • (A)- (III), (B)- (IV), (C)- (I), (D)- (II)
Show Solution

The Correct Option is D

Solution and Explanation

Economic theories and their relationships are outlined below:
(A) The Kuznets Curve relates income and inequality.
(B) The Fisher Effect relates expected inflation rate and interest rate. 
(C) The J Curve Effect relates currency depreciation and current account balance. 
(D) The Multiplier Effect relates autonomous investment and output. 
The correct pairing is (d)

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