Consumption and Investment Functions Three Marks Questions

12th Standard EM

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Economics

Time : 01:00:00 Hrs
Total Marks : 30
    10 x 3 = 30
  1. State the propositions of Keynes’s Psychological Law of Consumption

  2. Differentiate autonomous and induced investment.

  3. Explain any three subjective and objective factors influencing the consumption function.

  4. Mention the differences between accelerator and multiplier effect 

  5. State the concept of super multiplier

  6. Specify the limitations of the multiplier.

  7. Draw the diagram depicting the Relationship between rate of interest and Investment.

  8. Explain any three short fun factors of MEC.

  9. Explain any three leakages of multiplier.

  10. List of uses of multiplier.

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