The average propensity to consume is measured by _____.

If the Keynesian consumption function is C=10+0.8 Y then, and disposable income is ₹ 100, what is the average propensity to consume?

Lower interest rates are likely to :

The sum of the MPC and MPS is________.

As income increases, consumption will______

According to Keynes, investment is a function of the MEC and ____.

Assertion: Keynes propounded the fundamental psychological Law of Consumption.
Reason: The people to spend on consumption less than the full increment of income.
Codes:
(a) Both A and R are true and R is not the correct explanation of A
(b) Both A and R are true and R is the correct explanation of A
(c) R is true but A is false
(d) A is true but R is false

The Accelerator Principle
(a) β = \(\frac{ΔI}{ΔC}\)
(b) Ratio between induced investment and an initial change in consumption.
(c) Further developed by Hicks Samuelson and Harrod.
(d) First introduced by - J.M. Keynes

Subjective factors of consumption function
(a) The motive of precaution
(b) Income distribution
(c) Foresight
(d) The motive of pride

What is consumption function?

Define average propensity to consume (APC).

What do you mean by propensity to save?

Define Marginal Propensity to Save (MPS).

Define Accelerator.

State the propositions of Keynes’s Psychological Law of Consumption

Explain any three subjective and objective factors influencing the consumption function.

Specify the limitations of the multiplier.

Explain Keynes psychological law of consumption function with diagram.

What are the differences between MEC and MEI.