Question 1

Which of the following is not correct:

Accepted Answer

A) mpc declines as income increases 
B) mpc is positive but less than one 
C) mps is always positive 
D) all the above 
A) mpc declines as income increases 
B) mpc is positive but less than one 
C) mps is always positive 
D) all the above C

Question 2

In a two sector economy, aggregate demand is equalto

Accepted Answer

A) c+i 
B) c+s 
C) s+i 
D) all of the above 
A) c+i 
B) c+s 
C) s+i 
D) all of the above A

Question 3

According to Keynes the most important determinant ofinvestment

Accepted Answer

A) mec 
B) effective demand 
C) aggregate demand 
D) rate of interest 
A) mec 
B) effective demand 
C) aggregate demand 
D) rate of interest D

Question 4

In the equation C = 60 + 0.6 Y, MPCis

Accepted Answer

A) 60 
B) 0.6 
C) 0 
D) 1 
A) 60 
B) 0.6 
C) 0 
D) 1

Question 5

When disposable income risesfrom Rs 500 to Rs 600 and consumption expenditure changes from Rs 470 to Rs 560, MPC will be equalto

Accepted Answer

A) 900 
B) 100 
C) 0.9 
D) 1 
A) 900 
B) 100 
C) 0.9 
D) 1

Question 6

Schedule that expressesrelationship between rate of interest and corresponding amount of investment

Accepted Answer

A) mei 
B) mec 
C) effective demand 
D) aggregate demand 
A) mei 
B) mec 
C) effective demand 
D) aggregate demand

Question 7

Rate of change in savings to change in income:

Accepted Answer

A) aps 
B) apc 
C) mps 
D) mpc 
A) aps 
B) apc 
C) mps 
D) mpc

Question 8

According to Keynes, saving is:

Accepted Answer

A) private virtue but not social virtue 
B) private and social virtue 
C) is neither private virtue nor social virtue 
D) is either social virtue or private virtue 
A) private virtue but not social virtue 
B) private and social virtue 
C) is neither private virtue nor social virtue 
D) is either social virtue or private virtue

Question 9

In the Keynesian two sector model, when AD = AS, then:

Accepted Answer

A) si 
C) s=i 
D) i=0 
A) si 
C) s=i 
D) i=0

Question 10

Keynes considered subjective and objective factors:

Accepted Answer

A) important determinants of consumption 
B) unimportant determinants of consumption 
C) determinants of investment 
D) determinants of business's willingness to pay 
A) important determinants of consumption 
B) unimportant determinants of consumption 
C) determinants of investment 
D) determinants of business's willingness to pay

Question 11

MEC isinversely related to:

Accepted Answer

A) prospective yield 
B) supply price 
C) investment 
D) rate of interest 
A) prospective yield 
B) supply price 
C) investment 
D) rate of interest

Question 12

According to Keynes the most important determinant ofconsumption

Accepted Answer

A) rate of interest 
B) saving 
C) income 
D) investment 
A) rate of interest 
B) saving 
C) income 
D) investment

Question 13

In Keynesian terminology, investment means:

Accepted Answer

A) financial investment 
B) real investment 
C) induced investment 
D) none of the above 
A) financial investment 
B) real investment 
C) induced investment 
D) none of the above

Question 14

The MEC increases when:

Accepted Answer

A) capitalstock increases 
B) capitalstock decreases 
C) capital remains constant 
D) none of the above 
A) capitalstock increases 
B) capitalstock decreases 
C) capital remains constant 
D) none of the above

Question 15

Which of the following can cause shifts in consumption function:

Accepted Answer

A) psychological attitude 
B) social practices 
C) business motives 
D) changes in price level 
A) psychological attitude 
B) social practices 
C) business motives 
D) changes in price level

Question 16

APC is determined by the following equation:

Accepted Answer

A) c/y 
B) s/y 
C) ?c/?y 
D) ?s/?y 
A) c/y 
B) s/y 
C) ?c/?y 
D) ?s/?y

Question 17

MEC is directly related to

Accepted Answer

A) prospective yield 
B) supply price 
C) rate of interest 
D) all of the above 
A) prospective yield 
B) supply price 
C) rate of interest 
D) all of the above

Question 18

In the Keynesian two sector economy, AD<AS, then

Accepted Answer

A) s=i B) s>i C) si C) s

Question 19

Value of MPC is

Accepted Answer

A) >1 B) <1 C) 0 D) 0? mpc ?1 A) >1 B) <1 C) 0 D) 0? mpc ?1

Question 20

Keynesian economics is:

Accepted Answer

A) macro 
B) micro 
C) both 
D) none 
A) macro 
B) micro 
C) both 
D) none

Which of the following is not correct:

In a two sector economy, aggregate demand is equalto

According to Keynes the most important determinant ofinvestment

In the equation C = 60 + 0.6 Y, MPCis

When disposable income risesfrom Rs 500 to Rs 600 and consumption expenditure changes from Rs 470 to Rs 560, MPC will be equalto

Schedule that expressesrelationship between rate of interest and corresponding amount of investment

Rate of change in savings to change in income:

According to Keynes, saving is:

In the Keynesian two sector model, when AD = AS, then:

Keynes considered subjective and objective factors:

MEC isinversely related to:

According to Keynes the most important determinant ofconsumption

In Keynesian terminology, investment means:

The MEC increases when:

Which of the following can cause shifts in consumption function:

APC is determined by the following equation:

MEC is directly related to

In the Keynesian two sector economy, AD

Value of MPC is

Keynesian economics is:

Classical Economic Theory

Economics Model and Is-Lm Analysis

Macro Economics Terminology and Concepts

National Income Accounting and Keynesian Economics

Economic Theory and Methodology: Exploring the Fundamentals of Economics

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Exam 4: Keynesian Economics and Related Concepts

Which of the following is not correct:

In a two sector economy, aggregate demand is equalto

According to Keynes the most important determinant ofinvestment

In the equation C = 60 + 0.6 Y, MPCis

When disposable income risesfrom Rs 500 to Rs 600 and consumption expenditure changes from Rs 470 to Rs 560, MPC will be equalto

Schedule that expressesrelationship between rate of interest and corresponding amount of investment

Rate of change in savings to change in income:

According to Keynes, saving is:

In the Keynesian two sector model, when AD = AS, then:

Keynes considered subjective and objective factors:

MEC isinversely related to:

According to Keynes the most important determinant ofconsumption

In Keynesian terminology, investment means:

The MEC increases when:

Which of the following can cause shifts in consumption function:

APC is determined by the following equation:

MEC is directly related to

In the Keynesian two sector economy, AD

Value of MPC is

Keynesian economics is:

Classical Economic Theory

Economics Model and Is-Lm Analysis

Macro Economics Terminology and Concepts

National Income Accounting and Keynesian Economics

Economic Theory and Methodology: Exploring the Fundamentals of Economics

Filters