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

If the Keynesian consumption function is C=10+0.8 Y then, if disposable income is Rs 1000, what is amount of total consumption?

(a)

Rs.0.8

(b)

Rs.800

(c)

Rs.810

(d)

Rs.0.81

As national income increases

(a)

The APC falls and gets nearer in value to the MPC

(b)

The APC increases and diverges in value from the MPC.

(c)

The APC stays constant

(d)

The APC always approaches infinity

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