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Tamil Nadu State Board ( Samacheer Kalvi ) Online Test based on Book Back Questions - 12th Standard Economics - English Medium - Consumption and Investment Functions
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Samacheer Kalvi 12th
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Economics
Consumption and Investment Functions
Samacheer Kalvi 12th Economics - Consumption and Investment Functions - Book Back Questions in English Medium
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Question 1 Of 10
When the investment is assumed autonomous the slope of the AD schedule is determined by the …………………
marginal propensity to invest
disposable income
marginal propensity to consume
average propensity to consume.
Question 2 Of 10
The sum of the MPC and MPS is ……………..
1
2
0.1
1.1
Question 3 Of 10
The multiplier is calculated as
1(1-MPC)
1/ MPS
1/ MPC
a and b
Question 4 Of 10
An 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
Question 5 Of 10
As national income increases
The APC fall’s and gets nearer in value to the MPC
The APC increases and diverges in value from the MPC
The APC stays constant
The APC always approaches infinity.
Question 6 Of 10
As income increases, consumption will ……………..
Fall
not change
fluctuate
increase
Question 7 Of 10
Lower interest rates are likely to :
Decrease in consumption
increase the cost of borrowing
Encourage saving
increase borrowing and spending
Question 8 Of 10
The average propensity to consume is measured by
CY
C x Y
YC
C + Y
Question 9 Of 10
If the MPC is 0.5, the multiplier is …………………
2
1/2
0.2
20
Question 10 Of 10
The term Super multiplier was first used by
J.R. Hicks
R.G.D Allen
Kahn
J.M. Keynes
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