Consumption and Investment Functions Two Marks Question

12th Standard EM

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Economics

Time : 00:45:00 Hrs
Total Marks : 30
    15 x 2 = 30
  1. What is consumption function?

  2. What do you mean by propensity to consume?

  3. Define average propensity to consume (APC).

  4. Define Marginal Propensity to Save (MPS).

  5. Define Multiplier.

  6. Distinguish between positive multiplier and negative multiplier.

  7. Explain the kinds of multiplier.

  8. Write any two long run factors which influencing marginal efficiency of capital?

  9. What is leakages of multiplier?

  10. What are Ceteris paribus constant extraneous variables?

  11. When income increases, consumption expenditure also increases but by a smaller amount. Justify.

  12. Objective Factors – Define.

  13. State the Duesenberry hypothesis.

  14. Draw the diagram of autonomous investment.

  15. Define Induced investment.

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