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:

When consumption function starts from y axis, it indicates that ?

In an economy MPS=0.20 and investment is increased by Rs. 400 crores, than total increase in income is _____ Crores.

Arrange the following statements in chronological order in respect to the increase in the proportion of income people save.

(A) Marginal propensity to consume decreases.

(B) The level of income decreases.

(C) The amount of savings remains the same.

(D) The aggregate demand curve shifts downwards.

Choose the correct answer from the options given below:

1. (A), (B), (C), (D)
2. (A), (C), (B), (D)
3. (B), (A), (D), (C)
4. (A), (D), (B), (C)

Given AD = C + I + CY, change in autonomous consumption will lead to :

(A) Change in equilibrium level of income

(B) Change in aggregate demand

(C) Change in Investment

(D) Change in aggregate demand and no change in equilibrium level of income

(E) Change in marginal propensity to consume

Choose the correct answer from the options given below :

MPC stands for.

Match the LIST-I with LIST-II

Choose the correct answer from the options given below: