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12th Standard English Medium Economics Subject Consumption and Investment Functions Creative 5 Mark Questions with Solution Part - I Question Bank Software Jun-23 , 2021

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12th Standard English Medium Economics Subject Consumption and Investment Functions Creative 5 Mark Questions with Solution Part - I

12th Standard English Medium Economics Subject Consumption and Investment Functions Creative 5 Mark Questions with Solution Part - I

12th Standard

    Reg.No. :
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Economics

Time : 01:00:00 Hrs
Total Marks : 25

    5 Marks

    5 x 5 = 25

  1. What are the determinants of investment function?

  2. Explain Marginal propensity to consume and multiplier, with the help of a diagram.

  3. Explain the concept of super multiplier.

  4. State the Relationship between rate of interest and Investment:

  5. Derive the value of the multiplier assuming the basic form of the consumption function as C = a + bY where "a" is autonomous consumption and "b" is the marginal propensity to consume. You may assume a two-sector economy.

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