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प्रश्न
Explain the subjective factors which determine consumption function.
Give reason or Explain the following statement :
There are many subjective factors determine consumption function.
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उत्तर १
The following are some of the subjective factors that determine consumption function:
- Motive of precaution: People save money for the future in order to meet unexpected expenditure.
- Motive of foresightedness: People cut down their spending in order to meet future requirements for money. For examples, requirements for higher education, marriage, buying a house etc.
- Motive of independence: As per this motive, man saves more in order to depict more power and independence.
- Motive of pride: Another motive that prevents people from spending is wanting to maintain the same economic stability in the future. Providing some wealth to their future generations or making donations gives them a feeling of pride.
- Motive of enterprise: People prevent current consumption and save for the purpose of investing. Under this motive, people save to invest in a profitable enterprise.
- Motive of calculation: Under this motive, people save to invest in shares and debentures in order to increase their income.
उत्तर २
There are many subjective factors that determine consumption function.
There are many subjective factors that determine consumption function. It is because subjective factors like motive or precaution, motive of foresight, motive of calculation motive of improvement, motive of independence, motive of enterprise, motive of pride etc. influence consumption function.
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संबंधित प्रश्न
State the determinants of aggregate demand.
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Explain the role of Cash Reserve Ratio in removing an inflationary gap
explain the role of Bank Rate in correcting deficient demand?
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Explain with reason, whether you agree or disagree with the following statement:
Aggregate supply is influenced only by availability of natural resources.
Write explanatory answer:
What is Aggregate demand ? Explain the determinants of Aggregate demand.
State with reason whether you agree or disagree with the following statements. (any Three)
Aggregate demand depand only on the consumption expenture.
State whether the following statements are True or False with reason:
Income earned from foreign investment is considered for aggregate demand.
Fill in the blank with appropriate alternatives given below
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Fill in the blank with appropriate alternatives given below
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| Group A | Group B | ||
| 1) | Aggregate Supply | a) | Expected receipts |
| 2) | Autonomous Investment | b) | Lord J. M. Keynes |
| 3) | Consumption | c) | Government Investment |
| 4) | A.P.C. | d) | ΔC/ΔY |
| 5) | Investment | e) | C/Y |
| f) | Addition to stock of capital | ||
| g) | Destruction of utility | ||
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Aggregate Demand
Give reason or explain.
Aggregate demand is a positive function of the level of employment and output.
Distinguish between:
Aggregate Demand and Aggregate Supply
Write Short note on:
Marginal Propensity to Consume
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State with reason whether you agree or disagree with the following statement.
Aggregate demand depends only on the consumption expenditure.
State with reason whether you agree or disagree with the following statement.
Aggregate supply is influenced by the state of technology only.
State with reason whether you agree or disagree with the following statement.
Positive net earnings from foreign transactions add to aggregate demand.
Answer in detail.
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Answer the following question.
State and discuss the components of Aggregate Demand in a two-sector economy.
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Aggregate demand is greater than the aggregate supply.
Discuss the adjustment mechanism in the following situation :
Aggregate demand is lesser than Aggregate Supply.
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Keynes theory is associated with ______
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