The relationship between investment demand and the rate of interest is known as the ___________.
Output demand function
Interest demand function
Investment demand function
None of these
____________ shows the relationship between the total consumption and total income.
Marginal propensity to consume
Marginal propensity to save
Average propensity to consume
The population of income people wish to consume from additional income is called __________.
Average propensity to save
___________ shift is the shift of a function due to changes in its parameters.
Metric
Leftward
Parametric
Expenditure incurred on capital goods which help in producing other goods in the production process are called ___________.
Investment
Inventories
Capital
_____________ means the ratio of change in saving to change in income.
Marginal consumption
Average consumption
The functional relationship between saving and income is called___________.
Saving function
Consumption function
Propensity to consume
Find the odd one out.
1 1-C
?Y
? I
1 -? S
? Y
1
mps
___________is the ratio of total savings to total income.
Saving output ratio
Calculate A P C if consumption is 800 and income is 1000.
0.8
1.25
80
