In the linear consumption function C = a + bY, coefficient 'a' denotes
A) mpc
B) apc
C) autonomous consumption
D) induced consumption
Correct Answer:
Verified
Q8: Psychological law of consumption states that the
Q9: Net investment is also known as
A)depreciation
B)induced investment
C)autonomous
Q10: In the saving function S = -a
Q11: Who propounded Psychological law of consumption
A)adam smith
B)ricardo
C)keynes
D)pigou
Q12: When MPS = 0.2, MPC will be
A)0.8
B)0.2
C)1.2
D)20
Q14: In the equation C = 60 +
Q15: Keynes assumed the presence of --------- economy
Q16: Demand-pull inflation may be caused by:
A)an increase
Q17: Inflation:
A)always reduces the cost of living
B)always reduces
Q18: An increase in injections into the economy
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