The average propensity to consume is measured by

(a)

C/Y

(b)

CxY

(c)

Y/C

(d)

C+Y

An increase in the marginal propensity to consume will:

(a)

Lead to consumption function becoming steeper

(b)

Shift the consumption function upwards

(c)

Shift the consumption function downwards

(d)

Shift savings function upwards

As increase in consumption at any given level of income is likely to lead

(a)

Higher aggregate demand

(b)

An increase in exports

(c)

A fall in taxation revenue

(d)

A decrease in import spending

If the Keynesian consumption function is C = 10 + 0.5Y then, and disposable income is 100, what is the average propensity to consume?

(a)

0.5

(b)

0.6

(c)

0.7

(d)

0.8

Decrease in consumption at any given level of income is likely to lead

(a)

Lower aggregate demand

(b)

An increase in exports

(c)

Higher aggregate demand

(d)

An increase in Investment

MPC+MPS

(1)

1

APC

(2)

Autonomous investment

I

(3)

Profit motive

Investment that is not dependent on the national income

(4)

f(r)

Induced Investment

(5)

Average propensity to consume