consumption function

AD curve starts

• from the orgin

• point below the origin

• from point above the origin

• none of the above

Break-even point is achieved when

• consumption = saving

• consumption=investment

• national income>consumtionp

• national income=consumption

Average propensity to consume means

• tendency of the consumer towards higher consumption

• ratio of total consumption to total income

• level of income at which consumption expenditure is equal to income

• additional income to be spent on consumption

Which of the following is correct

• MPC+MPS=1

• 1-MPC=MPS

• 1-MPC=MPS

• ALL OF THESE

MPC is expressed as

If MPC is 0.25 then MPS will be

• 0.75

• 0.25

• 1.25

• 0

If disposable income is 100 and expenditure is 80 find out APS

• 0.2

• 0.50

• 0.8

• 0.3

MPC

• Is always positive

• can be equal to zero

• can also be negative

• can be greater than 1

................... refers to planned savings in an economy

• Ex-ante savings

• Ex-post savings

• APS

• MPS

• 60

• 50

• 40

• 70