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प्रश्न
Read the following statements carefully:
Statement 1: The consumption curve is an upward sloping straight line curve due to the direct relationship between income and consumption and the assumption of constant Marginal Propensity to Consume.
Statement 2: Aggregate Demand curve and Consumption curve are parallel to each other.
In the light of the given statements, choose the correct alternative from the following:
विकल्प
Statement 1 is true and statement 2 is false
Statement 1 is false and statement 2 is true
Both statements 1 and 2 are true
Both statements 1 and 2 are false
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उत्तर
Both statements 1 and 2 are true
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संबंधित प्रश्न
What is marginal propensity to consume?
State the meaning of the following:
Autonomous Consumption
Final goods refer to those goods which are used either for ______ or for ______.
Consumption depends on ______
Aggregate Demand is not determined by which of the following.
Which of the following statements is true?
On the basis of following schedule, answer the given questions:
| Income (in ₹ crores) |
Savings (in ₹ crores) |
| 0 | -20 |
| 50 | -10 |
| 100 | 0 |
| 150 | 30 |
| 200 | 60 |
- Calculate Marginal Propensity to Save (MPS) at ₹ 150 crores level of income.
- What is the value of Autonomous Consumption?
"In an economy, the autonomous consumption is ₹ 100 and Marginal Propensity to Consume (MPC) is 0.6. If the equilibrium level of Income is 2,000, then the autonomous investment is ₹ 300." Justify the statement with valid calculation.
Read the following statements carefully:
Statement 1: The induced consumption shows, the direct relation between consumption and income.
Statement 2: With a certain increase in income, induced consumption also increases.
In the light of the given statements, choose the correct alternative from the following:
Read the following statements carefully:
Statement 1: Consumption function assumes that, consumption changes at a constant rate as income changes.
Statement 2: Autonomous consumption is the ratio of total consumption (C) to total income (Y).
In light of the given statements, choose the correct alternative from the following:
If in an economy, the Investment Multiplier is 4 and Autonomous Consumption is ₹ 30 crore, the relevant consumption function would be ______.
In an economy, the value of Marginal Propensity to Save (MPS) is 0.25, what will be the value of increase in income, if investments increased by ₹ 200 crores?
