The most important determinant of consumption and saving is the:
Level of bank credit
Level of income
Interest rate
Price level
The total quantity of an economy's final goods and service demanded at different price levels is
The aggregate supply curve
The aggregate demand curve
The Phillip's curve
The aggregate expenditure function
The total quantity of an economy's intermediate goods demanded at all price levels
The total quantity of an economy's intermediate goods demand at a particular Price level
The total quantity of an economy's final goods and services demanded at a particular level.
The total quantity of an economy's final goods and services demanded at different price levels
To explain the simple theory of income determination, Keynes used
Consumption and Investment
Aggregate demand and aggregate supply
Production and Expenditure
All the above
The central problem in Macro Economics is
Income and employment
Price and Output
Interest and Money
Unemployment
The aggregate demand curve is downward sloping because
A lower price level, holding the nominal quantity of money constant, leads to a larger quantity of money in real terms causes the interest rate to fall, and stimulates planned investment spending
A lower price level, holding the nominal quantity of money constant leads t a larger quantity of money in real terms, causes the interest rate to fall, and stimulates planned investment spending
A higher price level, holding the nominal quantity of money constant
A higher price level holding the nominal quantity of money change
The Marginal Propensity to Consume
ΔS/ΔY
C/y . ΔP/ΔQ
ΔP/ΔQ
ΔC/ΔY
The marginal propensity of expenditure
The average propensity to consume
The marginal propensity to save
The marginal propensity to consume
The consumption function relates the consumption expenditure decisions of households to
Investment decisions of firms
The level of disposable income
Saving decisions of households
The nominal interest rate
In the equation C = a + bY, which describes the aggregate consumption function, 'b' stands for?
The amount of income when consumption is zero
The amount of consumption when income is zero
The average consumption level
