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Question
If increase in National Income is equal to increase in consumption, identity the value of Marginal Propensity to Save:
Options
Equal to unity
Greater than one
Less than one
Equal to zero
Solution
Equal to zero
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Which of the following is correct?
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Calculate Autonomous Consumption expenditure from the following data about an economy which is in equilibrium:
National Income = Rs 1,200
Marginal Propensity to Save = 0.20
Investment expenditure = Rs 100
The sum of MPC and MPS is always equal to _____
If the value of Average Propensity to Save (APS) is 0.2 and National Income is ₹4,000 crores, then consumption will be ______
If MPS = 0, the value of multiplier will be ______
Average Propensity to Consume is equal to:
If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be:
Assertion (A): Saving curve makes a negative intercept on the vertical axis at zero level of income.
Reason (R): Saving function refers to the functional relationship between saving and income.
How is APS obtained from the APC?
