The goods market

Who propounded the fundamental psychological "law of consumption" which forms the basis of the consumption function ?

• Adam Smith

• Amartya

  Sen

• David Ricardo

• J.M Keynes

Consumption function is C= 30+ 0.6 Y. What will be Marginal Propensity to save ( MPS ) ?

• 0.6

• 0.4

• 0.3

• 0.18

All the points which are right to the IS curve will represent?

• Excess supply of goods

• Excess demand for goods

• A & B both

• None of the above

When Income is zero, savings are _______ ?

• Zero

• Positive

• Negative

• None of the above

The volume of "AUTONOMOUS" Investment always remain ________?

• Constant

• Changing

• Both

• None of the above

In the case of wealthy people, MPS will be __________

• MPS does not depend on Income

• Low

• High

• None of the above

The Relationship between Average Propensity to Save (APS) & Average Propensity to Consume (APC) is given by - ?

• APC + APS = 10

• APC X APS = 1

• APC + APS = 0

• APC + APS = 1

IS curve shows that when income increases, the ______ ?

• interest rates must rise to restore equilibrium in the asset market

• interest rates must rise to restore equilibrium in the goods market

• interest rate must fall to restore equilibrium in the goods market

• interest rate must fall to restore equilibrium in the asset market.

Which of the following shows goods market equilibrium?

• LM Curve

• IS curve

• AS curve

• AD demand Curve

At the Break-Even Point ( BEP), Saving function line intersects

• Consumption function

• X-axis

• Y- axis

• None of these