If the Keynesian consumption function is C = 10 + 0.9Y then, if disposable income is Rs 1000, what is amount of total consumption?

(a)

0.9

(b)

800

(c)

0.91

(d)

910

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

Investment is the addition to real ___________

(a)

Input

(b)

Output Asset

(c)

Capital Assets

(d)

None of these

MPC Stands for ___________

(a)

Marginal Physical Consumption

(b)

Marginal Propensity to Consume

(c)

Marginal Price of the Commodity

(d)

None of these

The magnified effect of initial investment on income is called ___________ effect.

(a)

Multiplier

(b)

Value of multiplier

(c)

both

(d)

none