Assertion: The marginal efficiency of capital is also affected by waves of optimism and pessimism in the business cycle.
Reason: If businessmen are optimistic about future, the MEC will be likely to be high. During periods of pessimism the MEC is under estimated and so will be low.

Assertion: The multiplier refers to the change in national income resulting from change in investment.
Reason: The value of multiplier itself depends on consumption function or marginal propensity to consume.

The marginal propensity to save is defined as:

Which of the following is not correct:

According to Keynes the most important determinant of consumption

When MPS = 0.2, MPC will be

The systematic development of the simple accelerator model was made by ______

Which one of the following factor that is not taken into consideration while making any investment decision

What is relevant in the context of MEC?
I. The prospective yield from a capital asset.
II. The supply price of a capital asset.

Who is the proponent of the following statement? “The community with more equal distribution of income tends to have high propensity to consume.”

Assertion: When income increases, consumption expenditure also increases but by a smaller amount.
Reason: As income increases, our wants are satisfied side by side, so that the need to spend more on consumer goods diminishes.

When MPC + MPS = 1, which one of the following is wrong?

"The consumption expenditure depends not only on his current income but also past income and standard of living" Who said this?

The concept of multiplier was first developed by ______________ in terms of employment.

The expected rate of profit technically means __________

The marginal propensity save _________________

According to Keynes, investment is a function of the MEC and ____.

As income increases, consumption will______

Lower interest rates are likely to :

An increase in the marginal propensity to consume will: