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Published on: 27/08/2019
Consumption and Investment Functions
Download Tamil Nadu 12th Standard Economics question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.
Questions + Answers key
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1.
Decrease in consumption at any given level of income is likely to lead
Lower aggregate demand
An increase in exports
Higher aggregate demand
An increase in Investment
2.
If the Keynesian consumption function is C = 10 + 0.5Y then, and disposable income is 100, what is the average propensity to consume?
0.5
0.6
0.7
0.8
3.
As increase in consumption at any given level of income is likely to lead
Higher aggregate demand
An increase in exports
A fall in taxation revenue
A decrease in import spending
4.
An increase in the marginal propensity to consume will:
Lead to consumption function becoming steeper
Shift the consumption function upwards
Shift the consumption function downwards
Shift savings function upwards
5.
The average propensity to consume is measured by _____.
C/Y
CxY
Y/C
C+Y
6.
Induced Investment
7.
Investment that is not dependent on the national income
8.
I
9.
APC
10.
MPC+MPS
1.
(a)
Lower aggregate demand
2.
(b)
0.6
3.
(a)
Higher aggregate demand
4.
(a)
Lead to consumption function becoming steeper
5.
(a)
C/Y
6.
Profit motive
7.
Autonomous investment
8.
f(r)
9.
Average propensity to consume
10.
1
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Tamilnadu Stateboard 12th Standard Subjects
Maths
Chemistry
Physics
Biology
Computer Science
Business Maths and Statistics
Economics
Commerce
Accountancy
History
Computer Applications
Biology
Computer Technology
Computer Applications
Computer Science
Business Maths and Statistics
Commerce
Economics
Maths
Chemistry
Physics
Computer Technology
History
Accountancy
Tamil
English
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