Macro

Income & Employment

Easy

The value of marginal propensity to consume is lies between which of the following combination?

−1 and 1

1 and ∞

0 and 1

−∞ and ∞

✅ Correct Option: 3

MPC is the fraction of an additional unit of income that is spent on consumption. Since it is a positive fraction of extra income, it must lie between 0 and 1.

2026: 15 May Shift 1

Which is NOT the component of Aggregate Demand ?

2025: 29 May Shift 2

In a given consumption function C=50+0.5Y, autonomous consumption is.

2022: 10 Aug Shift 2

If MPC = 0.75, autonomous consumption = 100 crore, then find the level of consumption at income level = 8,000 crore :

2025: 29 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Inflationary gap	(I) A cause of deficiency of AD
(B) Decline in exports	(II) A monetary measure to correct disequilibrium between AD and AS
(C) Cash reserve ratio	(III) Pursued by the government of the country
(D) Fiscal policy	(IV) There is no unemployment or underemployment in the country

Choose the correct answer from the options given below:

2025: 2 June Shift 1

When income is more than consumption, then value of Average Propensity to Save (APS) is.

2025: 13 May Shift 1

If all the people of the economy increase the proportion of income they save, the total value of savings in the economy will not increase - it will either decline or remain unchanged. This result is known as .......

The value of marginal propensity to consume is lies between which of the following combination?

Solution

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