Class XII

Consumption changes in the same direction as income. It is
  1. Insufficient information
  2. FALSE
  3. Can’t say
  4. 1
C= -c+b(Y) is a
  1. Linear function of the level of Consumption expenditure
  2. Algebraic function of the level of Consumption expenditure
  3. Algebraic function of the level of capital expenditure
  4. Algebraic function of the level of Investment expenditure
MPC+MPS=
  1. 1.0
  2. 3
  3. 4
  4. 2
What is meant by investment
  1. Addition to the stock of capital goods
  2. Addition to the income
  3. Addition to the stock of unsold goods only
  4. Addition to the stock of raw materials only
MPS= 1+MPC. It is
  1. None of these
  2. TRUE
  3. Depends on their values
  4. 0
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